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Alexs parents are paying him an annuity for the next 10 years. The annuity makes (10) quarterly payments at the start of each quarter. The
Alexs parents are paying him an annuity for the next 10 years. The annuity makes (10) quarterly payments at the start of each quarter. The first payment is $1,000. The second payment is $1,500. The third payment is $2,000. Each payment continues to increase in the same pattern with each payment being $500 greater than the prior payment. Calculate the present value of Alexs payments at a nominal interest rate of 10% compounded quarterly.
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