14 deposits increasing at a constant rate of 7.5% are made at the end of each year. The first deposit was 1864 and fund earns 13.6% compounded annually. What is the future value of the periodic constant growth payments? Answer to two decimals, do not use $ signs or commas. Answer:
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Step 1: Calculate the future value of the periodic constant growth payments using the formula for the future value of an annuity: FV = P * ((1 + r)^n - 1) / r Where: FV = future value P = periodic payment r = interest rate n = number of periods Show more…
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