Two annuities - certain of 1 p.a. are each payable half-yearly for n years. The first payment under one is due at the end of 3 months and under the other at the end of 6 months from now. The total present value of the two annuities is 20.255. The amount of an annuity of 1 per quarter in arrear for n years is 47.719. If the same effective rate of interest applies throughout, find n and the rate of interest.

Two annuities - certain of 1 p.a. are each payable half-yearly for n years. The first payment under one is due at the end of 3 months and under the other at the end of 6 months from now. The total present value of the two annuities is 20.255. The amount of an annuity of 1 per quarter in arrear for n years is 47.719. If the same effective rate of interest applies throughout, find n and the rate of interest.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 5Q: If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the...

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