A 20-year annuity pays $1,450 per month, and payments are made at the end of each month. If the interest rate is 11 percent compounded monthly for the first ten years, and 7 percent compounded monthly thereafter, what is the present value of the annuity? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)
Answers: 2
![\large\boxed{PV=C[\frac{1}{r}-\frac{1}{r(1+r)^t}]}](/tpl/images/0518/8694/705ee.png)
![PV=C[\frac{1}{r}-\frac{1}{r(1+r)^t}]\\\\PV=\$ 1,450[\frac{1}{(0.11/12)}-\frac{1}{((0.11/12)(1+0.11/12)^{120}}]](/tpl/images/0518/8694/dbabd.png)
![PV=C[\frac{1}{r}-\frac{1}{r(1+r)^t}]\\\\PV=\$ 1,450[\frac{1}{(0.07/12)}-\frac{1}{((0.07/12)(1+0.07/12)^{240}}]](/tpl/images/0518/8694/9c2a9.png)
![PV=C[\frac{1}{r}-\frac{1}{r(1+r)^t}]\\\\PV=\$ 1,450[\frac{1}{(0.07/12)}-\frac{1}{((0.07/12)(1+0.07/12)^{120}}]](/tpl/images/0518/8694/c1458.png)
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A 20-year annuity pays $1,450 per month, and payments are made at the end of each month. If the inte...
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