Diff selection: Mark the radio buttons of the revisions to compare and hit enter or the button at the bottom.
Legend: (cur) = difference with latest revision, (prev) = difference with preceding revision, m = minor edit.
Legend: (cur) = difference with latest revision, (prev) = difference with preceding revision, m = minor edit.
| rev | Admin | (Created page with "'''Solution: D''' This solution uses time 8 as the valuation time. The two equations to solve are <math display = "block"> \begin{array}{l c r}{{P(i)=300,000(1+i)^{2}+X(1+i)^{8-y}-1,000,000=0}}\\ {{P^{\prime}(i)=600,0000(1+i)+(8-y)X(1+i)^{7-y}=0.}}\end{array} </math> Inserting the interest rate of 4% and solving: <math display = "block"> \begin{align*} 300,000(1.04)^{2}+X(1.04)^{8-y}-1,000,000=0 \\ 600000(1.04)+(8-y)X(1.04)^{7-y}=0 \\ X(1.04)^{-y}=[1.000,000-300,000...") | Nov 20'23 at 20:03 | +701 |