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A perpetuity - immediate with effective rate i pays 1 , 2 , 3 , dots, n at the end of year 1 , 2
A perpetuityimmediate with effective rate i pays dots, at the end of year dots, and pays n each thereafter. Determine which one of the following is NOT the price.
a
b
c
d None of these
John deposits into an account at the beginning of each year period for years. The account credits interest at an annual effective interest rate of i Suppose where is the accumulation at the end of th year right before the next payment Set up an equation for solving where is the year future value factor.
Smith deposits each at time yeardots, and each at time dots, into an account that earns effective annual rate i Find an expression for the total accumulation right after the last deposit and simplify it as much as possible.
Smith deposits each into an account that earns nominal annual rate compound monthly at the end of each month for months. He wants to deposit per month for the next months so that he'll have exactly right after the last deposit. Set up an equation for X
An year loan of with effective annual rate i can be paid off with annual payments of each at the end of each year. Find an expression of
Suppose that the PV of a perpetuitydue which pays annual payment of at end of each year with annual rate of interest is times the PV of the same perpetuity right after the th payment. Find an expression for
Bonus An npayment annuity pays at time dots, Show that
and thus dots
Bonus is deposited into Fund which earns an annual effective rate of At the end
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