Answer to Question #177976 in Financial Math for Calchand Devina

Question #177976

The force of interest is given by:

𝛿(𝑑)= {0.08βˆ’0.001𝑑 0≀𝑑<3

0.025π‘‘βˆ’0.04 3≀𝑑<5

0.03 𝑑β‰₯5


Calculate the present value at time 2 of a payment of Β£1,000 at time 10.


1
Expert's answer
2021-04-13T14:50:06-0400

"=100exp[(0.08) 8+(0.02) ln\\frac {1 1}{2}]"


"=1000e^{-0.04}3.67^{-0.02}"


"=\u00a3706.45"


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