Ex. Payments of 100, 200, and 500 are due at the ends of years 2, 3, and 8, respectively. Assuming an effective rate of interest of 5% per annum, find the point in time at which a payment of 800 would be equivalent: (a) By the method of equated time. (b) By an exact method. Ex. Payments of 300, 500, and 700 are made at the end of your 5, 6, and 8, respectively. Interest is accumulated at an annual effective rate of 4%. You are to find the point in time at which a single payment of 1500 is equivalent to the above series of payments. You are given: (i) (ii) X is the point in time calculated by the method of equated time. is the exact point in time. Calculate X+Y. Ex. John is 30 years old. He will receive two payments of $2500 each. The first payment will be an unknown number of years in the future. The second payment will be five years after the first payment At an annual effective rate of interest of 5%, the present value of the two payments is $2607. Determine at what age John will receive the second payment. Ex. Payments of 100, 200, and 500 are due at the ends of years 2, 3, and 8, respectively. Assuming an effective rate of interest of 5% per annum, find the point in time at which a payment of 800 would be equivalent: (a) By the method of equated time. (b) By an exact method. Ex. Payments of 300, 500, and 700 are made at the end of your 5, 6, and 8, respectively. Interest is accumulated at an annual effective rate of 4%. You are to find the point in time at which a single payment of 1500 is equivalent to the above series of payments. You are given: (i) (ii) X is the point in time calculated by the method of equated time. is the exact point in time. Calculate X+Y. Ex. John is 30 years old. He will receive two payments of $2500 each. The first payment will be an unknown number of years in the future. The second payment will be five years after the first payment At an annual effective rate of interest of 5%, the present value of the two payments is $2607. Determine at what age John will receive the second payment