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
Join Matchmatician's Affiliate Marketing Program to earn up to 50% commission on every question your affiliated users ask or answer.
- answered
- 200 views
- $12.00
Related Questions
- Make a graphical of analysis of the Strong Axiom of Revelead Preference
- Contract Crediting Rate Formula
-
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
-
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. - Finding Probability Density Function of a Standard Brownian motion: Conditioning for two different cases
- Internal Rate of Return vs Discount Rate
- Fixed installment loans?
