Ada, Betty and Chara receive an inheritance in the form of a series of level payments of $4,000 at the end of every year. They decide to let Ada start receiving the payments first, followed by Betty and finally Chara such that they receive the same present value at an annual interest of 4%. (a) How many regular payments should Ada receive and how large is the final irregular payment?

(b) Give a note on the payment pattern of Betty.

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a To determine how many regular payments Ada should receive and how large the final irregular paymen... View the full answer