A 13-year annuity pays $1,400 per month, and payments are made at the end of each...

A 13-year annuity pays $1,400 per month, and payments are made at the end of each month. The interest rate is 12 percent compounded monthly for the first Five years and 11 percent compounded monthly thereafter.

Required: What is the present value of the annuity?

A) $1,343,944.86

B) $109,755.50

C) $111,995.40

D) $152,061.20

E) $114,235.31

Expert Solution

Ans is C) $111,995.40

Calculations-

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jeff jeffy answered 2 years ago

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