Revision as of 20:28, 18 November 2023 by Admin (Created page with "'''Solution: E''' Break this into two parts – the first 30 increasing payments and the remaining level perpetuity. <math display = "block">350\left[\frac{1-\left(\frac{1.03}{1.07}\right)^{30}}{0.07-0.03}\right](1.07)+v^{29}\left(\frac{1}{0.07}\right) 350(1.03)^{29}=8033.38</math> {{soacopyright | 2023 }}")
Exercise
ABy Admin
Nov 18'23
Answer
Solution: E
Break this into two parts – the first 30 increasing payments and the remaining level perpetuity.
[[math]]350\left[\frac{1-\left(\frac{1.03}{1.07}\right)^{30}}{0.07-0.03}\right](1.07)+v^{29}\left(\frac{1}{0.07}\right) 350(1.03)^{29}=8033.38[[/math]]
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