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On Jan 1, Alex received an inheritance of thirty-year annuity. Starting on the day of the inheritance, the annuity pays $1000 each Jan 1, $2000 each April 1, $1500 each July 1, and $3000 each October 1. A) Using i=4%, calculate the value of this inheritance on the day Alex inherits it. B) If the value on the day she inherits it is $130,000, find the annual effective rate i used to calculate this value to the nearest hundredth of a percent.

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Statistics and Probability, Statistics

Category:- Statistics and Probability
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