Good morning everyone,

I have trouble with these questions:

1)The payments you received from a 20 year annuity−immediate paying 500 every 6 months have been left to accumulate in a fund and are now worth 40,000. If i(12) = 0.06 is the rate earned by your fund, calculate how long it is since the last annuity payment was made.

The answer is 10.15 months.

2)At a nominal rate of interest i, convertible semiannually, the present value of a series of payments of 1 at the end of every 2 years forever, is 5.89. Calculate i.

The answer is 8%, but I can't exactly get that figure.

I have trouble with these questions:

1)The payments you received from a 20 year annuity−immediate paying 500 every 6 months have been left to accumulate in a fund and are now worth 40,000. If i(12) = 0.06 is the rate earned by your fund, calculate how long it is since the last annuity payment was made.

The answer is 10.15 months.

2)At a nominal rate of interest i, convertible semiannually, the present value of a series of payments of 1 at the end of every 2 years forever, is 5.89. Calculate i.

The answer is 8%, but I can't exactly get that figure.

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