A 2n annuity immediate has payments of 1 for the first n years and 5...
70.2K
Verified Solution
Link Copied!
Question
Finance
A 2n annuity immediate has payments of 1 for the first n years and 5 for the second n years. If the annual effective interest rate is i, the present value for the annuity is 45.7753201471752. Also if the annual effective interest rate is i, the proportion of the total present value accountable by the second n years is 0.769823555046403. Find the annual effective interest rate required to force the proportion for the first n years to be equal to the proportion for the second n years.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
