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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License. math exams: Question FM 11/20/2011 05:53

Sunday, November 20, 2011

Question FM 11/20/2011 05:53

Calculate the present value at t=0 of a continuous payment stream made at the constant rate of $\rho_{t}=\$6$ per year from time 3 to time 6 years. The force of interest is given by $\delta_{t}=0.04$

Ans: $150[e^{-0.24}+e^{-0.12}]$
Posted by Ssafini : at 2:54 PM

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