S(soa) an annuity pays 1 at then end of each year for n years. using an annual effective interest rate of i, the accumulated value of the annuity at time (n + 1) is 13.776. it is also known that (1 + i)* = 2.476. calculate n. a) 4 b) 5 c) 6 d) 7 8

8

Step-by-step explanation:

Given:

Annuity at time (n + 1) = 13.776

(1 + i)ⁿ = 2.476

Now,

here, d =

thus,

or

d = 0.1071

therefore,

d =

or

0.1071 =

or

0.1071 + 0.1071i = i

or

i = 0.1199

now,

(1 + i)ⁿ = 2.476

or

(1 + 0.1199)ⁿ = 2.476

1.1199ⁿ = 2.476

taking log both sides

n × log(1.1199) = log(2.476)

or

n = 8.006 ≈ 8

hence,

the answer is 8

5.5

step-by-step explanation: