MATHEMATICS OF FINANCE QUESTION The force of interest is defined as follows, 2 3(1 + t)' 8(t): = t> 0 By using the above force of interest, answer the following questions:- a. Formulate a(t). b. Determine i3. c. Evaluate the present value of sum of the payment of RM100 made at the end of first year and RM300 made at the end of third year. d. If RM200 and RM400 are respectively deposited initially and at the end of second year, determine the accumulated value of the deposited fund at the end of five years.
MATHEMATICS OF FINANCE QUESTION The force of interest is defined as follows, 2 3(1 + t)' 8(t): = t> 0 By using the above force of interest, answer the following questions:- a. Formulate a(t). b. Determine i3. c. Evaluate the present value of sum of the payment of RM100 made at the end of first year and RM300 made at the end of third year. d. If RM200 and RM400 are respectively deposited initially and at the end of second year, determine the accumulated value of the deposited fund at the end of five years.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text:MATHEMATICS OF FINANCE QUESTION
The force of interest is defined as follows,
2
3(1 + t)'
8(t):
=
t> 0
By using the above force of interest, answer the following questions:-
a. Formulate a(t).
b. Determine i3.
c. Evaluate the present value of sum of the payment of RM100 made at the
end of first year and RM300 made at the end of third year.
d. If RM200 and RM400 are respectively deposited initially and at the end
of second year, determine the accumulated value of the deposited fund at
the end of five years.
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