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ikrabbe ikrabbe
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6 years ago
A retirement gratuity of $123 900.00 is invested in annuity deferred for 10 years. The annuity provides payments of $9600.00 due at the beginning of every six months. If interest is 7.41% compounded annually, for how long will annuity payments be made?
Textbook 
Contemporary Business Mathematics with Canadian Applications

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
Authors:
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wrote...
6 years ago
p =   - 1 = 0.03638796
FV = 123900.00(1.03638796 )20 = 123900.00(2.043841277) = $253 231.93 =   (due)
253,231.93 = 9600  (1.03638796)
25.45217342 = 
0.926152623 = 1 - 1.03638796-n
-n ln 1.03638796 = ln 0.073847376
-n(0.0357416) = -2.605754795
n = 72 .9054766 semi-annual periods ≈ 36.5 years
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