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#1




Mortgage Financing Problem; Textbook Typo?
I found this example problem in Eric V. Slud's "Actuarial Mathematics and LifeTable Statistics" book, but I'm having a hard time following it. I'm not sure if there's a typo, or if they just calculated the answer incorrectly, or what, but I'll share it with you here:
When I calculate the value in red, I get $52429.39 instead, which is a pretty noticeable difference. Did they mean annuity due instead of immediate (a dot dot instead of just a)? I tried that, but I still get a different answer. Were they using a different interest rate? I don't understand. What's the correct answer here, and how do you get it? If this helps, I also get different answers for the following two calculations: I don't understand how he's calculating the annuity value. It doesn't seem to follow from the formula. Last edited by JohnTravolski; 11112018 at 11:35 AM.. 
#3




Quote:
Last edited by JohnTravolski; 11112018 at 12:11 PM.. 
#5




wow, okay, I see it now. Thank you so much.

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