Question
1. If a(t) = (.5t+k) 2 wher k is a positive constant, what is the accumulation factor in the fifth period? 2. A perpetuity-immediate starts
1. If a(t) = (.5t+k)2 wher k is a positive constant, what is the accumulation factor in the fifth period?
2. A perpetuity-immediate starts with a payment of $1 and each subsequent payment is 1.08 times the previous payment. What is the present value of the annuity if the effective rate of interest is 10%?
3. How much interest on an investment of $1,000 is accumulated after 5 years using compound discount if the nominal annual rate of discount is 6% convertible twice a year?
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Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
