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Suppose you invest $230,000 in an annuity that returns 9 annual payments, with the first payment one year from now and each subsequent payment growing
Suppose you invest $230,000 in an annuity that returns 9 annual payments, with the first payment one year from now and each subsequent payment growing by 5%. At an interest rate of 7%, how much is the first annual payment you receive? Equivalent problem structure (as a borrower): Suppose you borrow $230,000 to be paid back over 9 years with the first payment one year from now and each subsequent payment growing by 5%. At an interest rate of 7%, how much is the first annual payment? Please round your answer to the nearest hundredth.
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