Smith purchases an annuity with payments made at the beginning of each month for 36 payments. The monthly payments are a constant amount of 15 for the first 24 payments,
however the 25th payment is 20, the 26th payment is 25, the 27th payment is 30, and this arithmetic sequence continues until the 36th payment. The nominal interest rate is 6%
convertible monthly. What is the present value of this annuity?

Answer rating: 100% (QA)

For the first 24 months there is a payment of 24 ... View the full answer