What is the value of X if Brian took out an endowment policy. The first annual payment was X, thereafter it increased yearly by R1 700. After 20 years the policy paid out R1 005 962. The yearly interest rate is 10%? Thank you.
PV ==1,005,962 / 1.10^20 ==R 149,529.84
PV=149529.84;D=1700;R=0.10;N=20;PMT=0;PMT = -(R* (R + 1)^N *((D *(R + 1)^(-N)* ((R + 1)^N - N* R - 1))/R^2 - PV))/((R + 1)^N - 1)
PMT==R 6,500.00 - first annual payment.