jonah2.0
Full Member
- Joined
- Apr 29, 2014
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From this thread:
....Going by the theoretical equation of value corresponding to this problem, you'd have to set 18 to n and equate the whole thing to 20,000 which is
646.56.0325(1.0325)n−1(1.0325)8=20,000
as suggested by my good friends, Sir Denis and Sir Ishuda.
As you may have noticed, there's some slight discrepancy when computing for the theoretical value of n. You can always expect such difference(s) whenever n is the unknown quantity in an annuity problem.
....Going by the theoretical equation of value corresponding to this problem, you'd have to set 18 to n and equate the whole thing to 20,000 which is
646.56.0325(1.0325)n−1(1.0325)8=20,000
as suggested by my good friends, Sir Denis and Sir Ishuda.
As you may have noticed, there's some slight discrepancy when computing for the theoretical value of n. You can always expect such difference(s) whenever n is the unknown quantity in an annuity problem.
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