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A 18-year annuity pays $1,300 per month, and payments are made at the end of each...

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Finance

A 18-year annuity pays $1,300 per month, and payments are madeat the end of each month. The interest rate is 12 percentcompounded monthly for the first six years and 10 percentcompounded monthly thereafter. What is the present value of theannuity?

Answer & Explanation Solved by verified expert
3.7 Ratings (689 Votes)
Step1Present value of annuity of first 6 years Present value of annuity for first 6 years Monthly payment Present value of annuity of 1 1300 511503915 6649551    See Answer
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Transcribed Image Text

A 18-year annuity pays $1,300 per month, and payments are madeat the end of each month. The interest rate is 12 percentcompounded monthly for the first six years and 10 percentcompounded monthly thereafter. What is the present value of theannuity?

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