Question
A 20 year annuity certain provides payments of $200 at time 1 year, $180 at time 2 years , $160 at time 3 years, and
A 20 year annuity certain provides payments of $200 at time 1 year, $180 at time 2 years , $160 at time 3 years, and so on until the payments have been reduced to $60. Payments then continue at $60 per year until the 20th payment has been made. The annual effective interest rate is 4%. Determine the present value of this annuity.
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Multinational Business Finance
Authors: David Eiteman, Arthur Stonehill, Michael Moffett
15th Global Edition
129227008X, 9781292270081
