Chapter 7, example 5 Solution

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April 15, 2017 at 8:15 am #381386
akanim
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Good day Sir

Why are we using 13 years on the solution If the first payment is made after 4 years and thereafter each year for a total of 10 years, why are we not using 14 years on the solution (4 + 10)?

Kind regards

Akani
April 15, 2017 at 10:10 am #381400
John Moffat
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Try counting the years 🙂

If there were 2 years then they would be at time 4 and time 5.
If there were 3 years then they would be at times 4, 5 and 6.

Keep going, and you will find the 10th payment is at time 13.
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