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( a ) For a given positive integer n , a rate of interest i can be found such that 4 s 2 n =
a For a given positive integer a rate of interest i can be found such that
Express in terms of how long it will take for money to double at this rate of
interest.
b An annuity is payable halfyearly for six years, the first halfyearly payment of
amount RM being due after two years. The amount of subsequent payments
decreases by RM each halfyear. On the basis of nominal interest of
convertible halfyearly, calculate the present value of the annuity.
c An annuityimmediate is payable annually for years. The annual payment is
RM for six years, followed by RM for nine years and finally RM for five
years.
i Show that the value of the annuity at the time of the first payment can be
written as:
ii Show that the value of the annuity at the time of the last payment can be
written as:
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