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ANSWER ONLY PART B Lucy received a gift of a twenty-one year annuity on the day she was born. The annuity pays $500 on her
ANSWER ONLY PART B
Lucy received a gift of a twenty-one year annuity on the day she was born. The annuity pays $500 on her odd birthdays and $700 on her even birthdays. (a) If the nominal rate of interest is 8% payable monthly, find the value of this annuity on the day she was born. (b) If the value of the annuity at the time of her birth was $6,000, find the annual effective discount rate as a percent, correct to the nearest one-hundredth of a percentStep by Step Solution
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