# A 15-year annuity pays $1,475 per month, and payments are made at the end of each month.

## Question:

A 15-year annuity pays $1,475 per month, and payments are made at the end of each month. If the interest rate is 9 percent compounded monthly for the first seven years, and 6 percent compounded monthly thereafter, what is the present value of the annuity?

AnnuityAn 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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## Fundamentals of Corporate Finance

**ISBN:** 978-1260153590

12th edition

**Authors:** Stephen M. Ross, Randolph W Westerfield, Robert R. Dockson, Bradford D Jordan