Exercise
ABy Admin
Nov 19'23
Answer
Solution D
Fund K receives 1000 at the end of each year and also receives interest payments of 1300, 1235, 1170, ..., 65. The accumulated value is
[[math]]
\begin{align*}
1000s_{\overline{20}|0.0825} + 65D(Ds)_{\overline{20}|0.0825} \\
= 1000(47.0491) + 65 \frac{20(1.0825)^{20}-s_{\overline{20}|0.0825}}{0.0825} \\
47, 049.1 + 65 \frac{97.6311 -47.0491}{0.0825}= 86,902.
\end{align*}
[[/math]]