Determine the value of the annuity

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Reference no: EM131495559

An annuity has payments that begin at $2 one year from now and increase by $4 per year until payments are $30.

The payments remain at $30 until the total payments first exceed $200.

Determine the value of the annuity now (i.e. one year before the first payment) if the valuation rate of interest is 5%.

Reference no: EM131495559

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