In: Finance
Find the accumulate value at the end of year 10 of a 10-year annuity with annual payments which pays $1000 in one year and each subsequent payment is 3% less than the preceding payment. The annual effective rate of interest is 5%.
An annuity immediate has semiannual payments with arithmetic progression of 800, 750, 700, . . . , 350, at i(2) = 0.16. Find the future value of this annuity 3 years after the last payment.