An insurance policy requires premium payments of $15 at the beginning of each month for 20...
An insurance policy requires premium payments of $15 at the beginning of each month for 20 years. Determine the discounted and accumulated values of these payments at j4 = 6%.
Homework Answers
Discounted Value = 
where r is the rate of interestfor a compounding period i.e. 6% /12 = 0.5%
n is the no of compounding periods i.e. 20 years * 12 = 240
= 
Discounted Value = $ 2093.71
Discounted Value of Annuity due = $ 2093.71157526 ( 1+ 0.005) = $ 2,104.18
Accumulated Value = 
=
= $ 6,965.27
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An insurance policy requires premium payments of $15 at the
beginning of each month for 20...
pls solve this mathematically use a time diagram if possible. please do not use excel spreadsheet...
pls solve this mathematically use a time diagram if possible.
please do not use excel spreadsheet
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pls solve this mathematically use a time diagram if possible.
please do not use excel spreadsheet
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