This exercise is about the formula (Ia) ² - (än - nv)/i. (a) An annuity pays £50 in a year, £100 in two years, £150 in three years, and so on with payments increasing by £50 per year. The last payment is £500 in ten years. Compute the present value of this annuity on the basis of an interest rate of 6% p.a. (b) An annuity pays £800 now, £850 in a year, £900 in two years, and so on with payments increasing by £50 per year. The last payment is £1300 in ten years. Compute the present value of this annuity at a rate of 6% p.a. (c) An annuity pays £800 now, £750 in a year, £700 in two years, and so on with payments decreasing by £50 per year. The last payment is £300 in ten years. Compute the present value of this annuity at a rate of 6% p.a.
This exercise is about the formula (Ia) ² - (än - nv)/i. (a) An annuity pays £50 in a year, £100 in two years, £150 in three years, and so on with payments increasing by £50 per year. The last payment is £500 in ten years. Compute the present value of this annuity on the basis of an interest rate of 6% p.a. (b) An annuity pays £800 now, £850 in a year, £900 in two years, and so on with payments increasing by £50 per year. The last payment is £1300 in ten years. Compute the present value of this annuity at a rate of 6% p.a. (c) An annuity pays £800 now, £750 in a year, £700 in two years, and so on with payments decreasing by £50 per year. The last payment is £300 in ten years. Compute the present value of this annuity at a rate of 6% p.a.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text:3. * This exercise is about the formula (Ia)n = (äñ — nvª)/i.
(a) An annuity pays £50 in a year, £100 in two years, £150 in three years, and so on with payments
increasing by £50 per year. The last payment is £500 in ten years. Compute the present value of this
annuity on the basis of an interest rate of 6% p.a.
(b) An annuity pays £800 now, £850 in a year, £900 in two years, and so on with payments increasing by
£50 per year. The last payment is £1300 in ten years. Compute the present value of this annuity at a
rate of 6% p.a.
(c) An annuity pays £800 now, £750 in a year, £700 in two years, and so on with payments decreasing
by £50 per year. The last payment is £300 in ten years. Compute the present value of this annuity at
a rate of 62% p.a.
(d) An annuity pays £800 now, £750 in half a year, £700 in one year, and so on with payments
decreasing by £50 per half-year. The last payment is £300 in five years. Compute the present value
of this annuity at a rate of 6% p.a.
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