as1

In each case find the rate of interest as indicated. Find delta given i=7.25% Find i given delta = 4.5% Find delta' given i^(2)=7.5% Find delta given d^(12) =4.8% Find delta_3.5 given 9% simple interest With compound interest and compound discount we have a constant force of interest delta_t = delta for all t greaterthanorequalto 0 delta_t = partial dervative/partial derivative t ln[(1 + i)^t] = ln (1 + i) delta delta_t partial derivative/partial derivative ln[(1 - d^-t] = ln(1 - d = delta The accumulation function becomes a(n) = e^integral_0^n delta dt = e^deltan = (1 + i)^n d^(m) is a nominal annual rate of of discount which is compounded m times over a year Interest is compounded at the beginning of every 1/m^th of a year At the rate d^(m)/m m is an integer greaterthanorequalto 1 Equating to annual effective rate I 1 + i = (1 - d^(m)/m)^-m OR d^(m) = m[1 - v^1/m]