Question
A monthly annuity due pays $1 at the beginning of the first month. Each subsequent payment increases by $1. The last payment is made
A monthly annuity due pays $1 at the beginning of the first month. Each subsequent payment increases by $1. The last payment is made at the beginning of the 240th month. Calculate the accumulated value of the annuity at the end of the 240th month using: (a) an interest rate of 6% compounded monthly; (b) an annual effective interest rate of 6%.
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