Fifty-year annuity-due


A fifty-year annuity-due is level except for the mth payment. The m-th payment is $3,000 and each of the other payments is $5,000. When calculated using an annual effective interest rate of 4%, the value of the annuity five years after the first payment is $134,707.94. Find m.

The answer in the back of the book is 19.

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Basic Statistics: Fifty-year annuity-due
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