Question

It is reported that an annuity-immediate with $100 annual payments for s years has an accumulated value of $933.52 at the time of its last payment. Furthermore, an annuity-immediate that has $40 annual payments and a term four times as long accumulates to $2,680.11 at the time of its last payment. Now consider an annuity that has the same term as the second of these annuities but only has a payment at the end of each four years. Suppose its first payment is $2,400 and each further payment is $300 more than its predecessor. Express the accumulated value of this third annuity at the time of its last payment as a function of the annual effective interest rate i . Make sure any annuity symbols appearing in the function are to be evaluated at the rate i used in valuing the first two annuities.

Answer 1

Answer:

Check the explanation

Explanation:

The Expressed accumulated value (which is the overall sum an investment holds at present, which also includes the capital that was invested and the gain it has received to date. The accumulated value can also be referred to as an cash value.) of this third annuity at the time of its last payment can be seen in the attached image below: