Question
Suppose given an annuity with payments at the beginning of the period first $100. Then at the beginning of each subsequent period the payment increases
Suppose given an annuity with payments at the beginning of the period first $100. Then at the beginning of each subsequent period the payment increases by $10 for each period. Payments continue to be made until it ends at the beginning of period 6. Furthermore, at the beginning of period 7, payments are resumed with a payout of $200, and growing $10 each period, until the payment stops at the beginning of the 10th period. If at period 5 there is a withdrawal of $300 and the effective interest per period by 5% : a) Determine the PV of the annuity b) Determine the AV of the annuity c) Determine the current value in period 8
please help my financial mathematics problem, thank you
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