Question: Two annuities have equal present values. The first is an annuity-immediate consisting of 35 payments with annual payments of $K to commence at the end

Two annuities have equal present values. The first is an annuity-immediate

Two annuities have equal present values. The first is an annuity-immediate consisting of 35 payments with annual payments of $K to commence at the end of the fifth year. The second is a decreasing annuity-immediate with 40 annual payments. The first payment is $2,000 and subsequent payments decrease by $50 per year. You may assume an annual effective interest rate of 5%. Determine K

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