Question: A 30-year annuity will pay $ 20,000 per year, beginning a year from today (i.e., t=1). If the interest rate is 7 % per year,

A 30-year annuity will pay $ 20,000 per year, beginning a year from today (i.e., t=1). If the interest rate is 7 % per year, compounded annually, for the first 13 years and 5 % per year, compounded annually, for the subsequent 17 years, what is the present value of the annuity at t=0? What is the future value of the annuity at t=25?

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