A level annuity pays 300 p.a. payable half-yearly in arrear for 7 years. Find the purchase...
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A level annuity pays £300 p.a. payable half-yearly in arrear for 7 years. Find the purchase price for an interest rate of 4% per annum (a) effective, (b) convertible half-yearly, (c) convertible quarterly. A level annuity pays £300 p.a. payable half-yearly in arrear for 7 years. Find the purchase price for an interest rate of 4% per annum (a) effective, (b) convertible half-yearly, (c) convertible quarterly.
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The present value of a level ordinary annuity is given by PV P x 1 1 in i 1 a When effective ... View the full answer
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