Question
A payment of $10 at time 1 and a payment of $20 at time 4 is equivalent to a payment of $30 at time t
A payment of $10 at time 1 and a payment of $20 at time 4 is equivalent to a payment of $30 at time t assuming a constant force of interest delta = .05. The method of equated time approximates t by tbar. Calculate tbar - t.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Smart Investors Survival Guide
Authors: Charles Carlson
1st Edition
0385503873, 978-0385503877
