Natalia makes deposits in an account earning 6% annual effective at the beginning of each quarter for 15 years. Each quarterly deposit in the first year is 200. Each quarterly deposit in the second year is 200 + P, and the quarterly deposits in each year continue to increase by P for the 15 year period. At the end of 15 years, Natalia will purchase a 20 year annuity that makes continuous payments at a rate of 1,200 per year for the first 10 years and 1,900 per year for the second 10 years. The interest rate on the continuous annuity is 4% annual effective. Calculate P. A B C D E 1.97 2.15 2.58 2.76 2.95
Natalia makes deposits in an account earning 6% annual effective at the beginning of each quarter for 15 years. Each quarterly deposit in the first year is 200. Each quarterly deposit in the second year is 200 + P, and the quarterly deposits in each year continue to increase by P for the 15 year period. At the end of 15 years, Natalia will purchase a 20 year annuity that makes continuous payments at a rate of 1,200 per year for the first 10 years and 1,900 per year for the second 10 years. The interest rate on the continuous annuity is 4% annual effective. Calculate P. A B C D E 1.97 2.15 2.58 2.76 2.95
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 61P
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Question
Transcribed Image Text:Natalia makes deposits in an account earning 6% annual effective at the beginning of each quarter for 15 years. Each quarterly
deposit in the first year is 200. Each quarterly deposit in the second year is 200 + P, and the quarterly deposits in each year continue
to increase by P for the 15 year period.
At the end of 15 years, Natalia will purchase a 20 year annuity that makes continuous payments at a rate of 1,200 per year for the first
10 years and 1,900 per year for the second 10 years. The interest rate on the continuous annuity is 4% annual effective.
Calculate P.
A
B
C
D
E
1.97
2.15
2.58
2.76
2.95
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