Question
Debbie purchases a growing annual annuity with 6 payments, and the first annuity payment starts in one year's time at $200. If payments grow at
Debbie purchases a growing annual annuity with 6 payments, and the first annuity
payment starts in one year's time at $200. If payments grow at 1.5% per year, and
current market rates of interest are 4% per year, what is the price she pays now for this
constantly growing annuity?
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Financial Management for Public, Health and Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
5th edition
1506326846, 9781506326863, 1506326862, 978-1506326849
