Determine the amounts of the first and the final payment

Reference no: EM13232716

Lawson just purchased an income annuity for $323,335. The income annuity pays interest at a rate of 3.85 percent compounded monthly. The first income payment will be made today and the final income payment will be made in twenty years. The monthly income payments will grow geometrically and the final payment will be 50 percent larger than the initial payment. Determine the amounts of the first payment and the final payment Lawson will receive.

Reference no: EM13232716

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