Question: Two annuities have equal present values. The first is an annuity-immediate with quarterly payments of $X for 10 years. The second is an increasing annuity-immediate

Two annuities have equal present values. The first is an annuity-immediate with quarterly payments of $X for 10 years. The second is an increasing annuity-immediate with 10 annual payments, where the first payment is $500 and subsequent payments increase by 10% per year. Find X if the annual effective interest rate is 5%. (Answer: 188.28)

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