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Popular Word Problems >

Zweli wants to buy an ordinary annuity that pays R6 000 a year for the next 20 years. The expect annual interest rates will be 6% over that time period. what is the máximo he will pay for annuity?

Solución

Zw e l i w an t s t o b u y an or d ina ry ann u i t y t ha t p a ys R 6000 a ye a r f or t h e n e x t 20 ye a rs . T h e e x p ec t ann u a l in t eres t r a t es w i ll b e 6% o v er t ha t t im e p er i o d . w ha t i s t h e ma x im u m h e w i ll p a y f or ann u i t y ?

Solución

Principal : 2727.27

Pasos de solución

Translate the problem into an equation:

6000 = P (1 + 0.06 \cdot 20)

Resolver para

P, 6000 = P (1 + 0.06 \cdot 20) : P = 2727.27

Principal : 2727.27

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