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4) (25 pts) Consider the annuity problem below. The equation related to the problem is: Pijm[(1+r).- 1]=P out [1-(1+r)-M] Let Pin = $1000, Power =
4) (25 pts) Consider the annuity problem below. The equation related to the problem is: Pijm[(1+r).- 1]=P out [1-(1+r)-M] Let Pin = $1000, Power = $(N1+2)*1000, Nin = (N1+1)*7 years, and Nowe = (N1+1)*3 years. Find the yearly interest rate r up to 4 digit accuracy using Secant method with r= 0.025 and r = 0.03 as initial guesses. If N1 = 0 take it to be 1. N1 = 2 N2 = 62 Soltions must be done as hand calculations! 4) (25 pts) Consider the annuity problem below. The equation related to the problem is: Pijm[(1+r).- 1]=P out [1-(1+r)-M] Let Pin = $1000, Power = $(N1+2)*1000, Nin = (N1+1)*7 years, and Nowe = (N1+1)*3 years. Find the yearly interest rate r up to 4 digit accuracy using Secant method with r= 0.025 and r = 0.03 as initial guesses. If N1 = 0 take it to be 1. N1 = 2 N2 = 62 Soltions must be done as hand calculations
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