An 11-year annuity has a series of payments 1,2,3,4,5,6,5,4,3,2,1, with the first payment made at the end of the second year. The present value of this annuity is 25 at interest rate i. A 12-year annuity has a series of payments 1,2,3,4,5,6,6,5,4,3,2,1, with the first payment made at the end of the first year. Calculate the present value of the 12-year annuity at interest rate i.
I know how to calculate the 11-year annuity but im having trouble with the 12-year one.
In the book, (ASM manual ed.10) it gives a formula where if a payment of n is repeated, the PV = (a angle n+1) * (a double dot angle n). So for this problem n = 6, but the solution gives (a angle 6)*(a double dot angle 7), reversing the two. Is this a typo or am i tripping out here??
I know how to calculate the 11-year annuity but im having trouble with the 12-year one.
In the book, (ASM manual ed.10) it gives a formula where if a payment of n is repeated, the PV = (a angle n+1) * (a double dot angle n). So for this problem n = 6, but the solution gives (a angle 6)*(a double dot angle 7), reversing the two. Is this a typo or am i tripping out here??
SOA 11/89 #8
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