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The concern we wish to contemplate now's: How would we calculate the current price of an annuity? See that the next equation has no P in it, so we simply cannot basically fix for P as we did in the initial equation. In a way, we will take into consideration equally equations together by serious about the following condition.
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Suppose Nick was establishing an curiosity bearing account at his regional bank even though his Mate Pete was organising an annuity together with his stock broker. Nick's account might be ruled by Visit Website the primary equation, although Pete's account could be governed by the second.
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