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An annuity-due has 29 payments of $800 per period. The effective rate of interest per period...

An annuity-due has 29 payments of $800 per period. The effective rate of interest per period is 7% for the first 9 periods and 3% for the following 20 periods.

(A) Find the accumulated value of the annuity using the portfolio method. Round your answer to 2 decimal places.

(B) Find the accumulated value of the annuity using the yield-curve method. Round your answer to 2 decimal places.

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Answer #1

Use of the porfolio method to find the accumulated value of twelve $800 payments for 7% interest for the first 9 payments, 3% for the rest 20 payments

Use of the yield-curve method to find the accumulated value of twelve $800 payments for 7% interest for the first 9 payments, 3% for the rest 20 payments

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