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the future value which coincides with the last payment of a finite annuity stream. The first payment occurs in four years, and the last payment

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the future value which coincides with the last payment of a finite annuity stream. The first payment occurs in four years, and the last payment occurs nine years from today. The first payment will be $135. Subsequent payments will grow at an annual rate of 5.0%. Use an effective annual rate (EAR) of 11.0%. Hint/ suggestion: Step 1, as always: draw a good cash flow timeline! THEN, realize that just like earlier present value and future value problems, you'll need to use the "g-button trick." Be careful in computing the total number of annuity payments (which is not equal to five. Make sure you understand why - via drawing a good cash flow timeline). If you do everything correct, you'll get a value of F = $1193.22. The next problem will be of the same type, but will use randomly generated input values. Enter your answer as a positive value, in dollars and cents. You Answered Correct Answers 1,193.22 (with margin: 1)

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