You are given:
(i) X is the current value at time 2 of a 20-year annuity-due of $1 per annum.
(ii) The annual effective interest rate for year t is (1/(8+t)).
Find X.
https://archive.org/details/theoryofinterest00kell/page/63/mode/1up?view=theater good reference if u need formulas for annuities
Markgvanzalk
96
Answer
Answers can only be viewed under the following conditions:
- The questioner was satisfied with and accepted the answer, or
- The answer was evaluated as being 100% correct by the judge.
1 Attachment
Kav10
2.1K
The answer is accepted.
Join Matchmaticians Affiliate Marketing
Program to earn up to a 50% commission on every question that your affiliated users ask or answer.
- answered
- 750 views
- $13.00
Related Questions
- Contract Crediting Rate Formula
- Internal Rate of Return vs Discount Rate
- Black Scholes Calculation
- Solving Constant Product for ratio
- Kelly Criterion for an example
- Disecting Constant Product formula
-
A fund pays 1 at time t = 0, 2 at time t = 2n and 1 at time t = 4n. The
present value of the payments is 3.61. Calculate $(1 + i)^n$. - Solving constant product for price
