State the accumulation function for investments made at a compounding interest rate of 10% per annum. Use
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State the accumulation function for investments made at a compounding interest rate of 10% per annum. Use this function to determine the following quantities at this interest rate.
a. The accumulated value of $100 after 17 years.
b. The accumulated value at t = 10 for a deposit of $40 made at t = 2 and another of $60 at t = 7.
c. The present value of a $150,000 debt due 3 months in the future.
d. The net present value of cash flows $40, $50, and $60 received at times t = 10, 11, and 12, respectively.
e. The accumulated value at t = 15 of the cash flows in part d.
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Related Book For
Introduction To Actuarial And Financial Mathematical Methods
ISBN: 9780128001561
1st Edition
Authors: Stephen Garrett
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