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Unformatted text preview: is 1 during the 1st year, and increases by amount X at the end oF each year. Determine X. 4. A twenty-year annuity-immediate with annual payments, has a present value oF 100. The frst payment is X , and the payment amount increases by 6.09% each year. IF i = 0 . 03 , fnd X. 5. Jane receives 10-year increasing annuity-immediate paying 100 the frst year and increasing by 100 each year thereaFter. Mary receives a 10-year decreasing annuity-immediate paying X the frst year and decreasing by X/ 10 each year thereaFter. at an eﬀective rate oF 5%, both annuities have the same present value. Calculate X. 1...
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This note was uploaded on 11/18/2010 for the course MATH 320 taught by Professor Dr.k during the Spring '10 term at Nevada.
- Spring '10