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.
"=100exp[(0.08) 8+(0.02) ln\\frac {1 1}{2}]"
"=1000e^{-0.04}3.67^{-0.02}"
"=\u00a3706.45"
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