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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License. math exams: Question FM 11/27/2011 10:34

Sunday, November 27, 2011

Question FM 11/27/2011 10:34

An annuity pays 1 at the end of each year for 20 years. Using an annual effective interest rate of i, the accumulated value of the annuity at time 2n+1 is 12.967. It is also known that $(1+i)^{n}=2.351$.
Calculate n.

Ans: $n=\frac{\ln(2.351)}{\ln(1.53641)}$

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