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#1




Increasing annuities
Smith makes deposits to a savings account on July 2 of each year. The first deposit was made on July 1, 1972, and the last deposit will be made on July 1, 1982. The first deposit was 1,000 and each subsequent deposit increases by 100. The account is credited with an effective annual rate of interest of 4%. Determine the value of Smith’s account as of July 2, 1982.
I’m doing 100(Is)angle11 formula, why doesn’t this work? 
#2




The first deposit wasn't 100.

#4




Here's some advice. Just learn the P,Q formulas. You don't need the specific formulas for increasing and decreasing annuities. I would just learn the present value formula for the P,Q annuity and then do an interest adjustment for a future value.

#6




There is a general formula that applies to all annuities where the payments are an arithmetic sequence. P is the amount of the first payment and Q is the difference in successive payments. With your problem P is 1000 and Q is 100. I would just learn the formula for present value of an annuity immediate, and do an interest adjustment. You want to minimize the number of formulas that you have to memorize.

#7




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