Problema fifteen-year annuity pays 1400 300k on the first, Ask an Expert

Finance

Problem:

A fifteen-year annuity pays $1400 + 300k on the first day of the k ? th month of the year. Thus it pays $1700 each January 1, $2000 each February 1,..., $5000 each December 1. The first payment is on a January 1.

Required:

Question: Find an expression for the value of this annuity just before the first payment and evaluate it if the annual effective interest rate is 3%.

Note: Please describe comprehensively and provide step by step solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91149562

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