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revAdmin (Created page with "'''Solution: E''' <math display = "block">D=\frac{\sum_{i=1}^{20} \frac{i}{1.04^i}}{\sum_{i=1}^{20} \frac{1}{1.04^i}}=9.21</math> years. Need to match the duration and also the value of investment today should be equal to the total liabilities. So have the following two equations: <math display="block"> V_5 * 5+V_{20} * 20=D *\left(V_5+V_{20}\right) </math> <math>V_5+V_{20}=\$ 13.59 M</math> Annuity formula Solving gives <math>V_5=\$ 9.78 M</math> and <math>V_{20}=...")Dec 5'23 at 0:39+916