Deposits of $7 for 45 years...

[KHM]

Originally Posted by Wannabe Actuary

doing this way in the middle I get (1 + i)^45 = 9.8

I don't remember what I got on the exam but when I do the problem now I am not getting this.

[Wannabe Actuary]

Originally Posted by KHM

I don't remember what I got on the exam but when I do the problem now I am not getting this.

now I keep getting (1+i)^45 = 11.8, which is an i of 5.63 or so, and then X equals 1340 give or take.....

Now I'm unsure, but if I blew it, so did everyone else on this thread.

[Wannabe Actuary]

Does anyone recall what number this was that it could be checked against the PAK? I know that's asking a lot, but if we can remember all 50 questions, is it so hard to imagine someone remembers what number this was?

since it worked out that
(1 + i)^45 - 1 = 10.8

I doubt we ALL accidentally subtracted 1 from each side instead of adding 1. Making that mistake will drive you to 1200.

Who knows, can't it just be exam results day yet so we can forget about all this?!

Originally Posted by Of course

No I think these were the numbers.

Thats how I did it:
N =45
PV=0
PMT=7
FV=1200 (I tried them all)
CPT I/Y -> 5.25%

5.25*1.2=6.3%

75.6/0.063 = 1200!

the other answers did not match so $1200 it is.

Don't worry wanna be, I think 1200 is correct. And yes, the original posting seems to be lacking a factor of 1.2i.

Notice that in the above posting Of Course uses 1.2 * 5.25. I think that is missing from the original posting.

So I think the problem setup is
7 * s angle 45 @ i = 75.60 / (1.2*i)

That works out to 1200.

[Wannabe Actuary]

Thanks Chef, puts the mind at ease a little that I'm not going totally nuts