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Calculate the Uniform Annuity Equivalent to an Arithmetic Gradient Series

Question 2

Multiple Choice

Calculate the uniform annuity equivalent to an arithmetic gradient series with a basic payment of $500 per year for 10 years that increases by $50 per year beginning in year 2, under 10% annual interest rate?


A) $500
B) $550
C) $686
D) $936
E) $1 186

Correct Answer:

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