An annuity alternates paying 100 and 200 at the end of every month starting in January during the first year. For the first 10 years, all the payments increase by 30 each year. in the second 10 years, the payments increase by 5% over the same month in the previous year. After the first 20 years, the payments remain unchanged and continue forever. How much should you be willing to pay for this annuity at a 2% interest rate?
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
An annuity alternates paying 100 and 200 at the end of every month starting in January during the first year. For the first 10 years, all the payments increase by 30 each year. in the second 10 years, the payments increase by 5% over the same month in the previous year. After the first 20 years, the payments remain unchanged and continue forever. How much should you be willing to pay for this annuity at a 2% interest rate?
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