Ile | E:/SEMESTER%2002/BASIC%20FINANCE/PD F/Time%20value%20of%20money%20Part% 2011.pdf Additional Questions
3. Mr. Emerson wishes to purchase an annuity contract that
will pay him, Rs.7000 a year for the rest of his life. The Sri
Lanka Insurance Corporation figures that his life expectancy is
20 years. The company imputes a compound annual interest
rate of 6% in its annuity contracts.
How much will Emerson has to pay for the annuity?
b. How much would he have to pay if the interest were 8%?
a.
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the required function is .

step-by-step explanation:

from the given table it is noticed that the graph passing through (-3,7), (0,4), (3,1) and (8,-4).

it is a linear function because the value of y is decrease by one as the value of x increase by 1.

the slope of the function is

the slope of the function is -1 and the y-intercept is 4.

the slope intercept form is

where, m is slope and b is y-intercept.

therefore the required function is . the graph of this function is shown below.

ddd

step-by-step explanation:

step-by-step explanation:

yes it represnts a functio, their are not 2 of the same numbers on the both sides

the answer is 8.64

step-by-step explanation: