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Consider an annuity for 10 years, whose payments vary in geometric progression. An annual effective interest...

Consider an annuity for 10 years, whose payments vary in geometric progression. An annual effective interest rate of 6% is used. Obtain the financial value at t = 29/05/2010 of this annuity considering different cases:

  1. Annual payments increasing 3% annually. First payment (€1,650; 29/05/2011).
  2. Annual payments increasing 5% annually. First payment (€1,650; 29/05/2011).
  3. Monthly payments increasing 0.3% monthly. First payment (€175; 29/06/2010).
  4. Monthly payments, constant during the year and increasing 4% annually. First payment (€175; 29/06/2010).

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Refer below solution, please comment if any query. All the best!

ekkarill92 answered 2 years ago
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