A bank makes payments continuously at a rate of 1000 per year. The payments are made between times 7 and 9 years. Find the present value of these payments at time 5 years using an annual effective rate of discount of $\%4$
Ans: $1000\frac{1-0.96^{2}}{\ln(1/0.96)}(0.96)^{2}$
No comments:
Post a Comment