Consider a fund which pays at the end of each year R*p, R*p, R*p,...., R*p, R*(p-1), R*(p-2),..., R (The payments are equal to R times p for the first k periods and then de- crease by a constant mutiplier each year until they reach R, which is the final payment). After the final payment is made, the fund balance is zero.

Calculate the discounted value A at interest rate of 7% per annum using the annuity dis- count formulas we have seen in class. Assume k=25, R=5, p=8.