A 15-year annuity pays $1,940 per month at the end of each month. If the discount rate

Question:

A 15-year annuity pays $1,940 per month at the end of each month. If the discount rate is 11 percent compounded monthly for the first 7 years and 6 percent compounded monthly thereafter, what is the present value of the annuity?

Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,... Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...

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