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You receive an inheritance of a thirty-year annuity, which pays 1 at the end of the...

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Finance

You receive an inheritance of a thirty-year annuity, which pays1 at the end of the first year, 2 at the end of the second year, 1at the end of the third year, 4 at the end of the fourth year, 1 atthe end of the fifth year, etc. This pattern will continue suchthat 1 will be paid out at the end of 29th year and 30 will be paidout at the end of the 30th year. Find the present value of thisinheritance if the annual effective interest rate is 4%(Answer:120.17)

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