Calculating Present Value of a Growing Annuity with Monthly Payments

[micaehl1985]

1. 5. A twenty year annuity has end of month payments. The first year the payments are each $100. In subsequent years each payment increases by $10 over what it was the previous year. Find the present value of the annuity if i = 4% is the effective annual interest rate.

Thank you

 

[Pengwuino]

We are not here to do your homework for you. You must show some effort first.

 

[micaehl1985]

I am not sure how to do this question. I tried to solve it.

 

[micaehl1985]

I am not sure how to do this question. I tried to solve it.

 

[snipez90]

Uh, okay? And how is repeating that in any way useful. Pengwuino didn't expect you to provide an entire solution, because you wouldn't be here in the first place if you had one. Showing effort means show us what you've tried.

This shouldn't be that hard. The present value of any type of quantity has a very specific formula.