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| rev | Admin | (Created page with "'''Solution: D''' The amount of the loan is the present value of the deferred increasing annuity: <math display = "block"> (1.05)^{-10}\left[500\ddot{a}_{\overline{{{300}}}|0.05}+500(I\ddot{a})_{\overline{{{300}}}|0.05}\right] = (1.05^{-10})(500)\Bigg[\ddot{a}_{\overline{{{300}}}|0.05}+\frac{\ddot{a}_{\overline{{{300}}}|0.05}-30(1.05)^{-30}}{0.05/1.05}\Bigg]=64,257. </math> {{soacopyright | 2023 }}") | Nov 19'23 at 0:22 | +404 |