Can anybody help for the problem about annuites "finance mathematics"

[Kagankarakoc]

Hello, I need your help.. Thank you

Present values amounts are equal of 2 infinite series. The payments are "end of period annuites". First serie: the payments are 100 USD for the first 2 years, for the the following two years are 200 USD, for the following 2 years are 300 USD, and it continues like this to infinity. Second serie : the payments are P for the first 3 years,for the the following three years are 2P, for the following threeyears are 3P, and it continues like this to infinity. what is the value of P?

 

[Kagankarakoc]

I couldn't find a way for solving this

 

[Kagankarakoc]

Ya, and my grandmother runs the mile in 4 minutes...

Well, give us "where you're at":
is this homework?
were you given formulas?
have you been exposed to stuff like at this site:
http://www.financeformulas.net/Present_Value_of_Growing_Perpetuity.html

Can you answer this simpler problem:
$1000 is deposited in an account at end of year#1;
this amount increases by 10% annually; end of year#2 = $1100, and so on;
the interest rate is 12% annually;
how much will be in the account at end of year#10 (after the 10th deposit) ?

no it is for actuarial exam for worldwide, "finance mathematics"
Your question is simple: =25.602

now will you answer my question or not, man?

 

[Deleted member 4993]

if it was clear, some other volunteers would have stepped in by now!

Yeah .... and we only like Denis to play in mud - he does not like it too much - but he is banned from clear water - sitting in the corner....

 

[Kagankarakoc]

It is? You mean is an example obtained from an exam given in the past?

Correct; 25,605.287412....to be exact.
Formula:
FV = d(y^n - x^n) / (y - x)
where:
d = first deposit (1000)
x = 1 + deposit increase (1.10)
y = 1 + interest rate (1.12)
n = number of deposits (10)

No, man.
I don't see how it's possible: you're not supplying an interest rate.
Plus you're not supplying the formula that would be given to handle such a problem.
With an arrangement like the one in your problem, 2 amounts same, then the increase,
there would be a way to combine the "2 same amounts" and treat as one, but I can't
see how that can be done if no interest rate is given.

Your problem as given is quite unclear and incomplete; if it was clear, some other
volunteers would have stepped in by now!

man if I have the formula or find the formula, why would I ask here, ??
the problem is correct, it is a question of the exam.

Nobody can help me? I need to solve this

 

[JeffM]

man if I have the formula or find the formula, why would I ask here, ??
the problem is correct, it is a question of the exam.

Nobody can help me? I need to solve this

Look

What is the future value of 2 payments of 100 payable at year end if the annual rate of interest is r? 100 + (1 + r)100 = 100(2 + r).

So the present value is 100(2 + r) / (1 + r)^2 = x / y.

So algebraic formula for the first series is: \(\displaystyle \displaystyle \sum_{i=1}^{\infty}\dfrac{xi}{y^i} = x * \sum_{i=1}^{\infty}\dfrac{i}{y^i}\)

It can't be worked out without knowing r.

 

[Kagankarakoc]

Thank you for your supports and time so far, but the answer is "D"

 

[Kagankarakoc]

I have no idea also, Maybe sir TKhunny may help us

 

[Kagankarakoc]

http://en.wikipedia.org/wiki/Actuarial_notation

Actuarial symbols seem all covered at that site...but I ain't interested in learning that junk!
Are you too tired or busy to look this up yourself?

Thank you very much, u made me find the solution.
When i found the solution, i wrote it properly while smoking my pipe.

But man, every kind of mathematic is enjoyable and fun. Especially actuaries works on real life, calculations of indemnitys of death people, in statistic and economics and more...

if you don't like this or u don't find this interesting sorry but u are in the wrong site and u don't like mathematics. This "a"symbol is used to simplify the calculations. Nothing more
anyway here is the answer attached for the people who is interested,
by the way thanks again man

 

[Kagankarakoc]

Thank you