What is the present value of growing annuity

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Reference no: EM131878576

Given an annual interest of 11%, calculate:

a) What is the value at the end of the 30th year of $80,000 that is invested at the beginning of the 5th year? (Be careful of the number of periods - draw a time line!).

b) What is the present value of a growing annuity where the first annual payment (of $80,000) is in three years, each subsequent payment is 11% greater than the previous payment, and there are 11 payments?

Reference no: EM131878576

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