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View Full Version : Annuity w/ 2 different interest rates for different years


hrcalpoly13
Oct 18, 2011, 08:33 PM
A 15-year annuity pays $1,500 per month, and payments are made at the end of each month. The interest rate is 11 percent compounded monthly for the first seven years, and 7 percent compounded monthly thereafter.

What is the present value of the annuity?

Please explain the process to get the answer