A 10-year annuity pays $1,500 per month, and payments are made at the end of each month.
Question:
A 10-year annuity pays $1,500 per month, and payments are made at the end of each month. If the interest rate is 15 percent compounded monthly for the first four years, and 12 percent compounded monthly thereafter, what is the present value of the annuity?
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Step by Step Answer:
To find the present value of the annuity well break it down into two parts the first four years when ...View the full answer
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9780072553079
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
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