What is the value of the annuity-annual payments
Problem:
You are considering buying a 3 year, $2500 annuity (annual payments). You receive the first payment in exactly one year. The required rate of return is 10% for year 1, 6% for year 2, and 5% for year 3. What is the value of this annuity?
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You are considering buying a 3 year, $2500 annuity (annual payments). You receive the first payment in exactly one year.
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