Question
An increasing immediate n = 10 years annuity of the initial payment P = 10000 and an annual increase D = 1000 has a planned
An increasing immediate n = 10 years annuity of the initial payment P = 10000 and an annual increase D = 1000 has a planned present value P P V = 100000.
(i) Present the cashflow of an annuitant which pays the P P V as the annuity starts.
(ii) Using the IRR function in EXCEL, find the interest rate i.
(iii) Verify the EXCEL computation by computing the present value of the annuity via a10 and (Ia)10 .
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Practical Finance For Property Investment
Authors: Craig Furfine
1st Edition
036733304X, 978-0367333041
