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Payments of 75 each are made every 2 months from September 1, 2006 to July 1, 2011, inclusive. For each of the following cases draw
Payments of 75 each are made every 2 months from September 1, 2006 to July 1, 2011, inclusive. For each of the following cases draw the time diagram line and find the value of the series:
(a) 2 months before the first payment at effective compound annual interest rate i = 0.05;
(b) 10 months before the first payment at nominal interest rate i(12) = 0.12 compounded monthly;
(c) 2 months after the final payment at nominal discount rate d(4) = 0.08 compounded quarterly;
(d) one year after the final payment at annual force of interest = 0.07.
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