Whilst at University, Oswald's aunt supported him financially. On 1 July 2012 Oswald agreed to pay her $10000 on 1 July 2017 and a further $10000 on 1 July 2022. At current rate of interest, the present value of these payments equal to $18762.47.

What is the duration of Oswald's liabilities to his aunt?

Question

Whilst at University, Oswald's aunt supported him financially. On 1 July 2012 Oswald agreed to pay her $10000 on 1 July 2017 and a further $10000 on 1 July 2022. At current rate of interest, the present value of these payments equal to $18762.47.

What is the duration of Oswald's liabilities to his aunt?

tkhunny · Answer

Didn't we just do this one last night?  Same class, maybe?

You are given: 10000v^5 + 10000v^10 = 18762.47

Can you solve for v?