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Janeesh owns an annuity that provides payments at the end of every 2 months, beginning on February 28, 2011. The first 3 payments are $75
Janeesh owns an annuity that provides payments at the end of every 2 months, beginning on February 28, 2011. The first 3 payments are $75 each, the next 6 payments are $50 each, and the last 3 payments are $25 each. Assume that the interest rate is i(6) = 12% throughout the term of the annuity. After the final annuity payment, the interest rate changes to i(6) = 8%. Find the value of the annuity on June 30, 2014.
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