a 20-years annuity-immediate has annual payments . The first payment is 100 and subsequent payments are...
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a 20-years annuity-immediate has annual payments . Thefirst payment is 100 and subsequent payments are increased by 100until they reach 1000. The remaining payment stay at 1000. theannual effective intersst rate 7.5% . What is the coast of thisannuity?
a 20-years annuity-immediate has annual payments . Thefirst payment is 100 and subsequent payments are increased by 100until they reach 1000. The remaining payment stay at 1000. theannual effective intersst rate 7.5% . What is the coast of thisannuity?
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Solution Calculation of cost of annuity Part 1 Calculation of Present value of 10 year deferred annuity Formula for deferred annuity 1000 PVIFA11rn PVIF11rn
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