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  #1  
Old 08-05-2012, 02:29 PM
lteece89 lteece89 is offline
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Default Typo in solution for Annuities question?

You set up a retirement fund by making annual payments at the end of each year for 30 years. The first payment is 1000 and each subsequent payment is increased by 100 over the previous one. The fund earns 5.8% annually. How much has accumulated in the fund at the end of 30 years?

I viewed the solution as an AV plus an increasing annuity.

I have that AV= 1000s(30) + 100(Is)(30).

The solution in the book uses the same s(30) value in both of these equations, but I don't see how that could be correct.

My work has (((1+i)^n) -1) / i for the first s(30) and (((1+i)^n) -1) / d for the s(30) used in the (Is)(30) formula.
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  #2  
Old 08-05-2012, 03:59 PM
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Kaner3339 Kaner3339 is offline
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Your first payment equals 1100. Change second term to 100v(Is)(29)
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Old 08-05-2012, 07:19 PM
Bananas88 Bananas88 is offline
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So the correct answer would be AV= 900s(30) + 100(Is)(30), right?
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Old 08-05-2012, 10:14 PM
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Kaner3339 Kaner3339 is offline
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sure that's another one
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