CT1 September 2017 Question 10(ii)

Discussion in 'CM1' started by Attack, Sep 18, 2020.

  1. Attack

    Attack Keen member

    Hi Guys. Anyone to assist on how the tables were used to come up with the annuity term of 41 years. I got all the factors but I am failing to see how they used the tables to come up with 41. Thanks
     
    Attack, Sep 18, 2020
    #1
  2. Greentea

    Greentea Active Member

    (Ia)t / at = 16.960

    if you look at the tables, (Ia)41 = 397.0675 and a41 = 23.4124

    so (Ia)41/a41 = 397.0675/23.4124 = 16.96

    is this what you mean?
     
    Greentea, Sep 18, 2020
    #2
  3. Lucy England

    Lucy England Member

    In this part of the question you end up with the expression ((Ia):<t>)/(a:<t>) = 16.960. The question asks you to show that t = 41, so if you calculate or look up (Ia):<41> and a:<41> then you can show that t = 41 satisfies the expression. Knowing the answer already helps a lot in this question!
     
    Lucy England, Sep 18, 2020
    #3
  4. Attack

    Attack Keen member

    Thank you very much, this is useful.
     
    Attack, Sep 18, 2020
    #4

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