Question: An easy payment plan offered by a local electronics store for your new audio system calls for payments of $2,000 at the end of year

An easy payment plan offered by a local electronics store for your new audio system calls for payments of $2,000 at the end of year 1, increasing by 15 percent each year thereafter through year 4. Your money is well invested and earns a consistent 10 percent per year.

a. What is the present worth of these payments?

b. If you prefer to make equal annual payments having the same present worth, how much would they be?

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