Deferred Annuity

JakeH

New member
Joined
Oct 25, 2012
Messages
2
When using an effective interest rate i it is known that the present value of $2000 at the end of each year for 2n​ years plus an additional $1000 at the end of each year for n years is $52,800. Find i.
I have it set up initially as
2000a_angle_2n + 1000a_angle_n=52,800 then using the formula a_angle_2n=a_angle_n + (V^n)*a_angle_n broke it down to
2000(a_angle_n + (V^n)*a_angle_n) + 1000a_angle_n= 52800
How would i go about solving for i ​from here?
 
sorry let me attempt to rephrase it. there are two payment streams. The first being from time 0 to time 2n (in years) with $2000 being deposited at the end of each year. The second stream being from time 0 to time n (also in years) with $1000 being deposited at the end of every year. At a certain interest rate, i , the present value of the combination of these payment streams equals $52800 i am attempting to find i. and a_angle_n is the written notation for
5bd52c88eeb7a187887321b1b875e0e6.png
, which is the present value of an annuity-immediate.
 
Top