Arithmetic Perpetuity Example - Minimum Annual Interest Rate Calculation
Sherry has $100,000 to fund a scholarship to the Naval Academy. The first payment is $3,000 and subsequent payments increase by $100 each year in perpetuity. Determine the minimum annual effective interest rate for sufficient funds.
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SOA Exam FM Module 2 Section 6 Arithmetic Perpetuity Example
?????????? ??????? Sherry has 100,000
?????????? ??????? Sherry has 100,000 with which to fund a scholarship to the Naval Academy.
?????????? ??????? Sherry has 100,000 with which to fund a scholarship to the Naval Academy. The first scholarship payment, to be made one year from now, is 3000. Subsequent annual scholarship payments are to increase by 100 each year into perpetuity. Determine the minimum annual effective interest rate at which the money is invested such that there will be sufficient funds to pay the scholarship payments.
?????????? ??????? Sherry has 100,000 with which to fund a scholarship to the Naval Academy. The first scholarship payment, to be made one year from now, is 3000. Subsequent annual scholarship payments are to increase by 100 each year into perpetuity. Determine the minimum annual effective interest rate at which the money is invested such that there will be sufficient funds to pay the scholarship payments. 3000 3100 3200 ?? = 100000
?????????? ??????? Sherry has 100,000 with which to fund a scholarship to the Naval Academy. The first scholarship payment, to be made one year from now, is 3000. Subsequent annual scholarship payments are to increase by 100 each year into perpetuity. Determine the minimum annual effective interest rate at which the money is invested such that there will be sufficient funds to pay the scholarship payments. 3000 3100 3200 =? ?+? ?? = 100000 ?2
?????????? ??????? Sherry has 100,000 with which to fund a scholarship to the Naval Academy. The first scholarship payment, to be made one year from now, is 3000. Subsequent annual scholarship payments are to increase by 100 each year into perpetuity. Determine the minimum annual effective interest rate at which the money is invested such that there will be sufficient funds to pay the scholarship payments. ? = 3000 3000 3100 3200 =? ?+? ?? = 100000 ?2
?????????? ??????? Sherry has 100,000 with which to fund a scholarship to the Naval Academy. The first scholarship payment, to be made one year from now, is 3000. Subsequent annual scholarship payments are to increase by 100 each year into perpetuity. Determine the minimum annual effective interest rate at which the money is invested such that there will be sufficient funds to pay the scholarship payments. ? = 3000 ? = 100 3000 3100 3200 =? ?+? ?? = 100000 ?2
?????????? ??????? Sherry has 100,000 with which to fund a scholarship to the Naval Academy. The first scholarship payment, to be made one year from now, is 3000. Subsequent annual scholarship payments are to increase by 100 each year into perpetuity. Determine the minimum annual effective interest rate at which the money is invested such that there will be sufficient funds to pay the scholarship payments. ? = 3000 ? = 100 3000 3100 3200 =3000 +100 ?? = 100000 ?2 ?
?????????? ??????? Sherry has 100,000 with which to fund a scholarship to the Naval Academy. The first scholarship payment, to be made one year from now, is 3000. Subsequent annual scholarship payments are to increase by 100 each year into perpetuity. Determine the minimum annual effective interest rate at which the money is invested such that there will be sufficient funds to pay the scholarship payments. ? = 3000 ? = 100 3000 3100 3200 =3000 +100 100000?2= 3000? + 100 ?? = 100000 ?2 ?
?????????? ??????? Sherry has 100,000 with which to fund a scholarship to the Naval Academy. The first scholarship payment, to be made one year from now, is 3000. Subsequent annual scholarship payments are to increase by 100 each year into perpetuity. Determine the minimum annual effective interest rate at which the money is invested such that there will be sufficient funds to pay the scholarship payments. ? = 3000 ? = 100 3000 3100 3200 =3000 +100 100000?2 3000? 100 = 0 ?? = 100000 ?2 ?
?????????? ??????? Sherry has 100,000 with which to fund a scholarship to the Naval Academy. The first scholarship payment, to be made one year from now, is 3000. Subsequent annual scholarship payments are to increase by 100 each year into perpetuity. Determine the minimum annual effective interest rate at which the money is invested such that there will be sufficient funds to pay the scholarship payments. ? = 3000 ? = 100 3000 3100 3200 =3000 +100 100000?2 3000? 100 = 0 ?? = 100000 ?2 ? ? = 100000 ? = 3000 ? = 100
?????????? ??????? Sherry has 100,000 with which to fund a scholarship to the Naval Academy. The first scholarship payment, to be made one year from now, is 3000. Subsequent annual scholarship payments are to increase by 100 each year into perpetuity. Determine the minimum annual effective interest rate at which the money is invested such that there will be sufficient funds to pay the scholarship payments. ? = 3000 ? = 100 3000 3100 3200 =3000 +100 100000?2 3000? 100 = 0 ?? = 100000 ?2 ? ? = 100000 ? = 3000 ? = 100 ? = 0.05
