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Suppose that the continuously compounded nominal interest rate is 10%. Calculate the time value, at the end of the tenth year, of a 10-year annuity
Suppose that the continuously compounded nominal interest rate is 10%. Calculate the time value, at the end of the tenth year, of a 10-year annuity that pays, starting from the end of the first month, $200 every month for the first five years and $300 every month for the remaining five years. Give your answer to the nearest dollar. [5]
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