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Hillier Hillier
wrote...
Posts: 550
Rep: 5 0
6 years ago
Catrina receives payments of $1120.00 at the beginning of each month from a pension fund of $79 500.00. Interest earned by the fund is 11.36% compounded monthly.
a) What is the number of payments Catrina will receive?
b) What is the size of the final payment?
Textbook 
Contemporary Business Mathematics with Canadian Applications

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
Authors:
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Replies
wrote...
6 years ago
a)    79500.00 = 1120 (1.0094667)
   70.31648017 = 
   0.665662679 = 1 - 1.0094667-n
   -n ln 1.0094667 = ln 0.334337321
   -n(0.009422139) = -1.095604853
   n = 116.2798491 payments
b)   PVn = 1120 (1.009466667)
      = 1120(0.2789165895)(1.009466667) = $314.50
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