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8(t)=10.05 The force of interest, 80), is a function of time and at any time t, measured in years, is given by the formula: 0.04
8(t)=10.05 The force of interest, 80), is a function of time and at any time t, measured in years, is given by the formula: 0.04 +0.021 0515 125 (i) Derive and simplify as far as possible expressions for v(t), where for v(t) is the present value of a unit sum of money due at time t. (8 marks] (ii) Calculate the present value of RM1000 due at the end of 17 years. (5 marks (iii) Calculate the present value at time t = 0 of a payment stream paid continuously from time t = 6 to time t = 10, under which the rate of payment at time t is f(t)=10001 17 marks) 8(t)=10.05 The force of interest, 80), is a function of time and at any time t, measured in years, is given by the formula: 0.04 +0.021 0515 125 (i) Derive and simplify as far as possible expressions for v(t), where for v(t) is the present value of a unit sum of money due at time t. (8 marks] (ii) Calculate the present value of RM1000 due at the end of 17 years. (5 marks (iii) Calculate the present value at time t = 0 of a payment stream paid continuously from time t = 6 to time t = 10, under which the rate of payment at time t is f(t)=10001 17 marks)
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