3 An annwity makes pay at ithe end af each year years. The finst payment is 1000 and each for 10 ylur The payment ihcreases 9% . What is The preset this aunu value of the interest vate remaine coustant at 5% per year!

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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3 An annurty makes paymeut
at the end
of each
tw 10 yeaus. The finst
year
payment is 1o00 and each
payment ihcreases
year The
by 9% . What o The preset
value of
this aunvity f
ithi interest vate remains
constant at s%. per year!
show all work
Transcribed Image Text:3 An annurty makes paymeut at the end of each tw 10 yeaus. The finst year payment is 1o00 and each payment ihcreases year The by 9% . What o The preset value of this aunvity f ithi interest vate remains constant at s%. per year! show all work
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