What is the value of a A. 27.5 B. 45 C. 50 D. 90
2 answers:
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Answer:
8
Step-by-step explanation:
Given:
Annuity at time (n + 1) = 13.776
(1 + i)ⁿ = 2.476
Now,
here, d =
thus,
or
d = 0.1071
therefore,
d =
or
0.1071 =
or
0.1071 + 0.1071i = i
or
i = 0.1199
now,
(1 + i)ⁿ = 2.476
or
(1 + 0.1199)ⁿ = 2.476
1.1199ⁿ = 2.476
taking log both sides
n × log(1.1199) = log(2.476)
or
n = 8.006 ≈ 8
hence,
the answer is 8
Answer:
- See below
Step-by-step explanation:
<u>Given:</u>
- Investment P = $20000
- Time t = 7 years
- Interest rate r = 5.5% = 0.055
a. <u>compounded semiannually, n = 2</u>
b. <u>compounded quarterly, n = 4</u>
c. <u>compounded monthly, n = 12</u>
d. <u>compounded continuously</u>