Find the present value with effective annual yield rate

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1. An annuity immediate has a first payment of 100 and increases by 100 each year until the payments reach 500 (e.g. the last payment is 500). The remaining payments are a perpetuity immediate of 500 beginning in year 6. Find the present value with an effective annual yield rate of 6.5%.

2. Mike deposited $20,000 in an account that pays 7% interest compounded monthly. How much would you have at the end of 9 years?

Reference no: EM131843988

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