Question
Find the total present value of an ordinary annuity and a perpetuity. The ordinary annuity makes 8 equal annual payments of $500 each year with
Find the total present value of an ordinary annuity and a perpetuity. The ordinary annuity makes 8 equal annual payments of $500 each year with its first payment made at the end of year 4. The interest rate for the ordinary annuity is 5%. The perpetuity makes equal annual payments of $200 with the first payment one year from today. The interest rate for the perpetuity is 9%.
Answer Format:
ENTER YOUR ANSWER AS A POSITIVE NUMBER
INCLUDE ONLY NUMBERS AND DECIMALS IN YOUR ANSWER. Do not include "$" "," or any other formatting. Carry computation to at least 4 decimals and round your final answer to 2 decimal places.
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