Question: Brian has an annuity that is going to pay him $1000 at the end of year 1 and $1200 at the end of year 2.

Brian has an annuity that is going to pay him $1000 at the end of year 1 and $1200 at the end of year 2. The payments will continue to increase by the same amount for 10 years, at which time they will end. Find the present value of this annuity if the interest rate is 4% compounded annually.

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