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Question 4 Money is placed continuously into a fund earning 4% per year. The rate of deposit is $4 per year during the first 10 years, $8 per year during the next 5 years and $12 per year during the final 5 years. At the end of 20 years, the amount in the fund is used to purchase an increasing perpetuity of $1, $2, $3,..., with the first payment n + 2 years after the date of purchase. The rate of interest for the perpetuity is 5% per year. Find n. (Answer to the nearest integer) A B с D E 15 16 17 18 19

Question 4 Money is placed continuously into a fund earning 4% per year. The rate of deposit is $4 per year during the first 10 years, $8 per year during the next 5 years and $12 per year during the final 5 years. At the end of 20 years, the amount in the fund is used to purchase an increasing perpetuity of $1, $2, $3,..., with the first payment n + 2 years after the date of purchase. The rate of interest for the perpetuity is 5% per year. Find n. (Answer to the nearest integer) A B с D E 15 16 17 18 19

College Algebra
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter8: Sequences And Series
Section8.4: Mathematics Of Finance
Problem 2E
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Question 4 Money is placed continuously into a fund earning 4% per year. The rate of deposit is $4 per year during the first 10 years, $8 per year during the next 5 years and $12 per year during the final 5 years. At the end of 20 years, the amount in the fund is used to purchase an increasing perpetuity of $1, $2, $3,..., with the first payment n + 2 years after the date of purchase. The rate of interest for the perpetuity is 5% per year. Find n. (Answer to the nearest integer) A B с D E 15 16 17 18 19
Transcribed Image Text:Question 4 Money is placed continuously into a fund earning 4% per year. The rate of deposit is $4 per year during the first 10 years, $8 per year during the next 5 years and $12 per year during the final 5 years. At the end of 20 years, the amount in the fund is used to purchase an increasing perpetuity of $1, $2, $3,..., with the first payment n + 2 years after the date of purchase. The rate of interest for the perpetuity is 5% per year. Find n. (Answer to the nearest integer) A B с D E 15 16 17 18 19
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