Question
Units of $1 are deposited at the beginning of each year for n years into a financial instrument offering an interest rate of i
Units of $1 are deposited at the beginning of each year for n years into a financial instrument offering an interest rate of i annually. The interests are then re-invested into another financial instrument offering the interest rate of j annually. a. Derive the accumulated function of deposited fund at the end of n. years based on i and j above. b. At n = 10,i = 5% and j = 4%, calculate (a). c. If j = i, show that (a) is equal to the future value of annuity - due at interest rate of i.
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Contemporary Business Mathematics with Canadian Applications
Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs
11th edition
134141083, 978-0134141084
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