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Assume that a fund will grow at a nominal annual discount rate of 2.5o/o convertible monthly for the first three years, force of interest t
Assume that a fund will grow at a nominal annual discount rate of 2.5o/o convertible monthly for the first three years, force of interest t = t
1+0.1t for the next two years, effective annual rate of discount at 3o/o for the next
three years and effective annual rate of interest of 3.5o/o thereafter. Calculate the present value now of 75000 to be paid in 9 years from now and of 100000 to be paid in 12 years from now.
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