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Both of the following annuities have a present value of X at an annual effective interest rate of i, where i > 0 a. a
Both of the following annuities have a present value of X at an annual effective interest rate of i, where i > 0
a. a 10-year annuity-immediate with annual payments of $150;
b. a 30-year annuity-immediate with annual payments of $100 per year for the first 10 years, $50 per year for the second 10 years, and $25 per year for the final 10 years.
Calculate X to the nearest ten dollars.
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