A 15-year annuity pays $1,750 per month, and payments are made at the end of each month.

Question:

A 15-year annuity pays $1,750 per month, and payments are made at the end of each month. If the interest rate is 11.4 percent compounded monthly for the first seven years, and 8.6 percent compounded monthly thereafter, what is the value of the annuity today?

Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...