Math finance question on Varying Annuities with Payments at a Different Frequency than Interest is Convertible
On his 65th birthday, Smith would like to purchase a ten-year annuity-immediate
that pays 6000 per month for the first year, 5500 per month for the second
year, 5000 per month for the third year, and so on. Using an annual effective
interest rate of 5%, how much will Smith pay for such an annuity?
This is a good resource https://archive.org/details/theoryofinterest00kell/page/1/mode/1up?view=theater
Markgvanzalk
96
Join Matchmaticians Affiliate Marketing
Program to earn up to a 50% commission on every question that your affiliated users ask or answer.
- answered
- 795 views
- $12.00
Related Questions
- Year 12 Finance - Combining Superannuation and withdrawals
-
You are given:
(i) X is the current value at time 2 of a 20-year annuity-due of $1 per annum.
(ii) The annual effective interest rate for year t is (1/(8+t)).
Find X. - Solving Constant Product for ratio
- Solving Constant Product for price
-
A fund pays 1 at time t = 0, 2 at time t = 2n and 1 at time t = 4n. The
present value of the payments is 3.61. Calculate $(1 + i)^n$. - Black Scholes Calculation
- Solving constant product for price
- Fixed installment loans?
