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When computed using an effective interest rate of I, it is known that the present value of $2,000 at the end of each year for
When computed using an effective interest rate of I, it is known that the present value of $2,000 at the end of each year for 2n years plus an additional $1,000 at the end of each of the first n years is $52,600. Using this same interest rate, the present value of an n year deferred annuity-immediate paying $4,000 per year for n years is $27,500. Find n. (Hint: First find any and a 2. then V" and 1. Round your answer to the nearest integer.)
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