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CT1 April 2013 Q8 DPP

A

Adam Ahmed

Member
Hey all,

I trust everyone's revision is going well? I had a query regarding DPP, wondering if someone could assist me. Attempting Q8 in April 2013, I get a slightly different answer to the mark scheme even though my equation of value is the same as the mark scheme.

The only difference in my approach is the way I've set up my Geometeric series, which shouldn't make any difference. Wondering If someone could critique my working out? Really can't see why I'm not getting the correct answer.

Question and my working out are attached.

Thanks in advance.

W
 

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Since the last year (Year 8) would have PV of income of \(75.6*1.04^5v^8\), your general rule should be \(75.6*1.04^{n-3}v^n\).
 
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