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Monday, November 14, 2011

Question FM 11/14/2011 10:16

A bank makes payments continuously at a rate of 100 per year. The payments are made between 3 and 13 years. Find the accumulated value of these payments at time 20 years using an annual interest rate of $7\%$.

Ans: $100\frac{(1.07)^{10}-1}{ln(1.07).(1.07)^{7}}$

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