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Consider an annuity-immediate with 12 annual payments. The first payment is 500 at the end of the first year and each subsequent payment increases by

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Consider an annuity-immediate with 12 annual payments. The first payment is 500 at the end of the first year and each subsequent payment increases by 7%. Find the AV of this annuity at the time of the last payment at an annual effective rate of interest i=4%. Possible Answers 6,779 7,468 10,435 10,853 11,287

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