4. John makes deposits of 1,100 at the end of each year for n years into a fund. At time n, he uses the accumulated value of the fund to purchase an annuity Immediate that makes payments of 30,102.71 at the end of each year for 15 years. The annual effective interest rate is 13%. Calculate n. a. n = 24 نه د ل فة b. n = 26 n = 28 d. n = 20 e. n = 18
4. John makes deposits of 1,100 at the end of each year for n years into a fund. At time n, he uses the accumulated value of the fund to purchase an annuity Immediate that makes payments of 30,102.71 at the end of each year for 15 years. The annual effective interest rate is 13%. Calculate n. a. n = 24 نه د ل فة b. n = 26 n = 28 d. n = 20 e. n = 18
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:4. John makes deposits of 1,100 at the end of each year for n years into a fund.
At time n, he uses the accumulated value of the fund to purchase an annuity
immediate that makes payments of 30,102.71 at the end of each year for 15 years.
The annual effective interest rate is 13%.
Calculate n.
a. n = 24
b. n = 26
n = 28
d. n = 20
e. n = 18
نه ن ن ف ق
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An annuity is a payment plan that provides periodic income in return for a lump sum payment. It is widely used in insurance and retirement accounts.
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