River Babylon, an archaeology professor, invests $65,000 in a parcel of land that is expected to increase

Question:

River Babylon, an archaeology professor, invests $65,000 in a parcel of land that is expected to increase in value by 8 percent per year for the next five years. He will take the proceeds and provide himself with a 12-year annuity. Assuming a 9 percent interest rate, how much will this annuity be?

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,...

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