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#1




HELP WITH ANNUITY OFFPAYMENT NUMERICAL APPROACH
For the life of me I cannot figure out how to get an answer using numerical approach. I have reread Section 4a to 4c over and over.
Question 1: 100 deposited at the beginning of each 4year period for 40 years. Account credits annual effective interest i. Accumulated amount at end of 40 years is X which is 5 times accumulated amount at the end of 20 years. I set up using 4 year payment period with effective interest j=((1+i)^4)1 Setting (using interest j): 500(s angle 5) = 100(s angle 10), I get j=31.95%. From j, i=7.18% which is what the solutions show. When I try to find X @ j=31.95%, i use: X=100(s angle 10)= 4701.52 The correct answer is supposed to be 6195. The solution shows the symbolic approach setting up the problem as: 100(s angle 40/a angle 4)=500(s angle 20/a angle 4) which also yields i=7.18% Then they use X=100(s angle 40/a angle 4) @ i=7.18%, X=6195 Please help me figure out where I am going wrong when trying to solve for X using the numeric approach!!!!!!!!!!!!! 
#2




Payments are beginning of each interval so double dot the s's. Also your 4701.56 should be 4694.53, the multiply by 1.3195.

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