An Insurance Company is offering annuities for a term of 30 years with annual payments at the end of each year. The interest rate is 8% compounded annually. The company also guarantees a 10% increase in annual payments every 5 years, beginning at the end of year 6, and every 5 years thereafter to the 30th and last payment. If we invest $500,000 in this annuity, what would be the first payment? Any help would be appreciated. Thank you.
