Revision as of 13:48, 19 November 2023 by Admin (Created page with "'''Solution: C''' <math display = "block"> \begin{aligned} & 5,000,000=X a_{\overline{40} \mid 0.02 } \\ & X=182,778.74 \\ & O B_{20}=5,000,000(1.02)^{20}-183,000 s_{\overline{20}|0.02} \\ & O B_{20}=2,983,318.31 \\ & 2,983,318.31=200,000 a_{\overline{n}|0.02} \\ & n=17.89 \end{aligned} </math> 20 original payments plus 18 with the drop payment equals 38 total payments. {{soacopyright | 2023 }}")
Exercise
ABy Admin
Nov 19'23
Answer
Solution: C
[[math]]
\begin{aligned}
& 5,000,000=X a_{\overline{40} \mid 0.02 } \\
& X=182,778.74 \\
& O B_{20}=5,000,000(1.02)^{20}-183,000 s_{\overline{20}|0.02} \\
& O B_{20}=2,983,318.31 \\
& 2,983,318.31=200,000 a_{\overline{n}|0.02} \\
& n=17.89
\end{aligned}
[[/math]]
20 original payments plus 18 with the drop payment equals 38 total payments.
Copyright 2023 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.