You receive an inheritance of a thirty-year annuity, which pays 1 at the end of the...

You receive an inheritance of a thirty-year annuity, which pays 1 at the end of the first year, 2 at the end of the second year, 1 at the end of the third year, 4 at the end of the fourth year, 1 at the end of the fifth year, etc. This pattern will continue such that 1 will be paid out at the end of 29th year and 30 will be paid out at the end of the 30th year. Find the present value of this inheritance if the annual effective interest rate is 4%(Answer: 120.17)

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jeff jeffy answered 2 months ago

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