(5) On January l, 1988, Felix inherited a perpetuity with annual payments beginning in six months. The first payment was $3,000,
and after that the payments increased by 3% each year. Find the value of this perpetuity on January 1, 1995 if the annual effective interest rate was 6% from January I, 1988 through January I, 1996 and 4% thereafter.
1 answer:
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<h3>Answer:</h3>
y=1/2x
<h3>Solution:</h3>- The slopes of perpendicular lines are opposite reciprocals of each other.
- The simplest way to determine a number's reciprocal is to flip it over, like so:
- Now, change the sign:
- So we have the <em>slope </em>of the line that's <em>perpendicular </em>to the given line.
- Now, let's find the line's equation.
- First, let's write it in Point-Slope Form:
- y-y1=m(x-x1)
- y-(-2)=1/2(x-4)
- y+2=1/2x-2 (Point slope)
- Now, convert to slope-intercept:
- y=1/2x+2-2
- y=1/2x
Hope it helps.
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