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Just tell me how to enter this number in the calcultor? - Unindexed ordinary annuity paid pthly a(p)n:i=i1(1+i)ni(p)i - Indexed ordinary annuity paid pthly a(p)n:i:g=ig1(1+i1+g)ni(p)i
Just tell me how to enter this number in the calcultor?
- Unindexed ordinary annuity paid pthly a(p)n:i=i1(1+i)ni(p)i - Indexed ordinary annuity paid pthly a(p)n:i:g=ig1(1+i1+g)ni(p)i Cost of each annual starting dollar payable p times per year for n years indexed at compound rate g after the first year, assuming the fund to earn an effective rate i per annum - where i(p)=p{(1+i)1/p1} The cost per starting dollar of a ten-year annuity indexed at 3\% p.a. payable monthly, purchased at a yield of 5.5% p.a. is: a(12)10:0.055:0.03=$8.742139Step by Step Solution
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