he 16-year annuity-immediate A pays 100 in the  rst year and increases by 4% annually thereafter. The 16-year annuity-immediate B pays X in the first year and then decreases by 2% each year thereafter.

At an eective annual interest rate of 5%, both annuities have the same present value. Compute X?

Answer rating: 100% (QA)

Answer Effective annual interest rate 5 B... View the full answer