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#1
10-24-2007, 02:09 PM
 twink Member Join Date: Aug 2007 Posts: 39
Why did I solve wrong?

Qustion:
http://www.math.ilstu.edu/krzysio/KO-FM-Exercise129.pdf
I tried to solve it with decreased annuity formula directly :

50000=(p-20*300)*a 20l -300*(a 20l -20v^200)/0.02 at i=0.02

But I got p=17710.8

Could anyone tell me what I did wrong?

Thanks so much!

Last edited by twink; 10-24-2007 at 02:50 PM..
#2
10-24-2007, 04:47 PM
 Gandalf Site Supporter Site Supporter SOA Join Date: Nov 2001 Location: Middle Earth Posts: 26,467

Why don't you show all your work? Then maybe it will be clearer what you did wrong. The formula looks OK.

Maybe you did 20*300 = 12,000 or instead of doing 20*300 did 40*300, since your answer is off by 6,000.
#3
10-24-2007, 05:12 PM
 twink Member Join Date: Aug 2007 Posts: 39

Oh you are right, I did 40*300. Thanks a lot!

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