Annuity X provides a series of ten annual payments, beginning January 1, 2012. The initial payment is
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Question:
Annuity X provides a series of ten annual payments, beginning January 1, 2012. The initial payment is $1,000 and each subsequent payment is (1.05)2 times the previous one.
Annuity Y provides a series of ten annual payments, beginning July 1, 2012. The initial payment is $1,000 and each subsequent payment is $K larger than the previous one. The total amount paid under each annuity is the same. In which of the following ranges is $K?
A. < $110 B $110 but < $120 C $120 but < $130. D $130 but < $140 E $140
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