Question: What is the appropriate price to pay for a contract guaranteeing payments of $1500 at the end of each quarter for the next 12 years?

What is the appropriate price to pay for a contract guaranteeing payments of $1500 at the end of each quarter for the next 12 years? You require a rate of return of 6% compounded quarterly for the first five years, and 7% compounded quarterly for the next seven years.

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