The account earns an annual effective rate of interest

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A retirement account is established with $500,000. Annual payments are recieved at the end of each year for the next 20. The account earns an annual effective rate of interest of 9.2%. the first payment is of size P and each succeeding payment is increased by 4% to adjust for inflation. Calculate P and the balance in the retirement after the 12th payment.

Reference no: EM131307799

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