All Answers

Yes, it certainly CAN be solved!!. It is not really that much different from an ordinary annuity. The only slight difficulty is separating the investment rate of 6% from the "indexing" rate, which are blended together. But we know how to do that. Will use this common TVM formula:

PMT=PV. R.{[1 + R]^N/ [1 + R]^N - 1}=2,500=526,308.21.R.{[ 1 + R]^300 / [ 1 + R ]^300 - 1}, solve for R, which is the blended interest rate. Plugging these number into my computer, which is programmed to solve TVM problems of this type, gives a blended rate of 2.9925% monthly compound. We divide this by 1200=.00249375 blended monthly rate. Since we know the investment rate is 6% comp. monthly, then the monthly rate is 6/1200=.005. Or, 1.005, which we will divide by the blended monthly rate we got above, 1.00249375 thus: 1.005 / 1.00249375=1.0025 -1 =.0025 x 100 =.25%. This is the monthly index rate of his annuity payments. Or, .25 x 12=3% compounded monthly. And that is it.

Good luck to you.

GuestApr 12, 2016

#1

+37191

0

Divide both sides by 3000 to get

4000/3000 = (1 + (x/400)^8

4/3 = (1+(x/400)^8 Now take the 8th root of both sides

(4/3)^1/8 = 1+x/400

1.0366146 = 1 + x/400

.0366146 = x/400

14.6459 =x

ElectricPavlovApr 12, 2016

#1

+23254

0

If every person's salary goes up by $1000.00:

The mean salary goes up by $1000.00.

The person who had the median salary before the raise will be the person who has the median salary after the raise and, since that person's salary went up by $1000.00, the median salary goes up by $1000.00

The person who had the lowest salary still has the lowest salary, but it is $1000.00 higher.

Similarly, the person who had the highest salary still has the highest salary, but it is also $1000.00 higher.

Finally, the quartiles of the salary distribution also increase by $1000.00.

geno3141Apr 12, 2016

#2