Solution-Method of equated time, Payments of 300, 500 and

Method of equated time

Reference no: EM133117007

Payments of 300, 500 and 700 are made at the end of years ?ve, six and eight. respectively. Interest is accumulated at an annual effective rate of 4%. You are to ?nd the point in time at which a single payment of1,500 is equivalent to the above series of payments. You are given:

(i) X is the point in time calculated by the method of equated time.

(ii) Y is the exact point in time.

Calculate X + Y.

Reference no: EM133117007

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Method of equated time : Payments of 300, 500 and 700 are made at the end of years ?ve, six and eight. respectively. Interest is accumulated at an annual effective rate of 4%.

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Method of equated time

Reference no: EM133117007

Reference no: EM133117007

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