Question FM 11/21/2011 02:22

Lina receives $\$200$ in 1 year, $\$250$ in 2 years, $\$300$ in 3 years, and so on until the final payment of $\$700$. Using an annual effective rate of interest of $4\%$. Find the present value of these payments at time 0.

Ans:$50.(Ia)_{\bar{11}}+150.a_{\bar{11}}$