An increasing annuity makes annual payments, and the first payment occurs in 6 months. The annuity pays 36 in 6 months, 39 in 1.5 years, 42 in 2.5 years, and so on until a final payment of 78 in 14.5 years. Using an annual effective interest rate of 14%, calculate the present value of the annuity.
An increasing annuity makes annual payments, and the first payment occurs in 6 months. The annuity pays 36 in 6 months, 39 in 1.5 years, 42 in 2.5 years, and so on until a final payment of 78 in 14.5 years. Using an annual effective interest rate of 14%, calculate the present value of the annuity.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 12E
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