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Annuity A has payments at the end of each year for 10 years. The first payment is $1000 and the remaining payments increase by k%
Annuity A has payments at the end of each year for 10 years. The first payment is $1000 and the remaining payments increase by k% each year. The account has an annual effective rate of interest of 7%. Annuity B is a 10 year annuity-immediate with anual payments of $1,000 and an annual effective rate of interest of 4%? What value of k would make Annuity A and B equivalent?
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