Problem $8$

His recently departed Uncle Jimmy, may he rest in peace, has left John a $25-$year annuity $(25$ annual payments$).$ He

will receive the first payment of $$5,000$ in $4$ years from today, and payments will grow at a constant rate of $5\%$ per

year thereafter. What is the present value of his inheritance if he is discounting at a$)3\%($EAR$)$; b$)5\%($EAR$)$; and

c$)10\%($EAR$)?$