CT1 chapter 12

Discussion in 'CT1' started by shdh, Mar 19, 2016.

  1. shdh

    shdh Ton up Member

    Can anyone please explain me how did we get 2% as annual rate in question 12.17, PDF page 421.

    Also, what is the relation between the two, 6% and 8%, that the two were subtracted.

    Thank you in advance for your help.
     
  2. John Lee

    John Lee ActEd Tutor Staff Member

    We have a compound increasing annuity, which can be converted to a level annuity with an approximate rate of 8% - 6% = 2%. This is shown at the end of chapter 7.
     
  3. shdh

    shdh Ton up Member

    Thank you very much sir, for your reply.
     
  4. John Lee

    John Lee ActEd Tutor Staff Member

Share This Page