Maddy Christiansen received $2,900 today July 1, 2012 from her annuity. Ms. Christiansen has been receiving similar

Question:

Maddy Christiansen received $2,900 today July 1, 2012 from her annuity. Ms. Christiansen has been receiving similar payments on the first of each month for several years from an annuity that will expire on September 1, 2015. If she discounts the future cash flows at an annual rate of 8 percent, what is the present value of her annuity including the July 1 payment? Assume that the APR is compounded monthly.

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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