An annuity has payments at the beginning of every three months starting today. The first payment is $100 and payments increase by 1% every three months for the first four years, making the 16th payment $116.10 to the nearest cent. After this, payments increase by $1 every three months for 32 additional payments, making 48 payments in total. If d(5) = 5.5%, find the present value of this annuity.
An annuity has payments at the beginning of every three months starting today. The first payment is $100 and payments increase by 1% every three months for the first four years, making the 16th payment $116.10 to the nearest cent. After this, payments increase by $1 every three months for 32 additional payments, making 48 payments in total. If d(5) = 5.5%, find the present value of this annuity.
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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Transcribed Image Text:An annuity has payments at the beginning of every three months starting today. The
first payment is $100 and payments increase by 1% every three months for the first four
years, making the 16th payment $116.10 to the nearest cent. After this, payments increase
by $1 every three months for 32 additional payments, making 48 payments in total. If
d (5) = 5.5%, find the present value of this annuity.
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