Answer to Question #171494 in Financial Math for jim

Question #171494

e) The force of interest is given by: 𝛿(𝑡) = { 0.08 − 0.001𝑡 0 ≤ 𝑡 < 3 0.025𝑡 − 0.04 3 ≤ 𝑡 < 5 0.03 𝑡 ≥ 5 Calculate the present value at time 2 of a payment of £1,000 at time 10


1
Expert's answer
2021-03-16T08:10:55-0400

"= 1000 exp[(-0.08) 8 + (0.02) ln 11\/3]"

"= 1000 e" -0.04"3.67" -0.02

"= \u00a3706.45"



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Comments

Assignment Expert
18.03.21, 07:50

Dear Mike, please use the panel for submitting a new question.

Mike
17.03.21, 15:21

Calculate the present value as at 1 March 2005 of a series of payments of £1,000 payable on the first day of each month from April 2005 to December 2005 inclusive, assuming a rate of interest of 6% pa convertible monthly.

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