Jeff bought an annuity immediate for $45.24. This annuity immediate is designed such that payments start at $1, increasing by annual amounts of $1 to a final payment of $n and then decrease by annual amounts of $1 to a final payment of $1. Using an annual effective interest rate of 16%, calculate n.

Jeff bought an annuity immediate for $45.24. This annuity immediate is designed such that payments start at $1, increasing by annual amounts of $1 to a final payment of $n and then decrease by annual amounts of $1 to a final payment of $1. Using an annual effective interest rate of 16%, calculate n.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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