A 20 year annuity pays $50 at the beginning of each month during the first year, $55 at the beginning of each month during the second year, $60 at the beginning of each month during the third year, and so on. The nominal annual interest rate is 6% compounded monthly. Calculate the present value of the annuity.

Answer rating: 100% (QA)

Step 1 Time period 20 years Nominal an... View the full answer