The effective monthly rate of interest is 04 percentage


Carl receives a 15 year annuity which makes payments at the beginning of each month. The payments during the first year are 10 dollar per month (the sum of the payments is 1200 dollar over the first year) and monthly payments decrease of 3 percentage thereafter. The effective monthly rate of interest is 0.4 percentage. Find the present value of the annuity at the time of the first payment.

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Financial Management: The effective monthly rate of interest is 04 percentage
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