Revision as of 18:52, 19 November 2023 by Admin (Created page with "'''Solution: D''' Let C be the redemption value and <math>v = 1/(1+i)</math>. Then <math display = "block"> \begin{align*} X &= 1000r a_{\overline{2n}|i}+C\nu^{2n}\\ &=1000r\frac{1-\nu^{2n}}{i}+381.50\\ &=10000(1.03125)(1-0.5889^{2})+381.50 \\ &=1055.11 \end{align*} </math> {{soacopyright | 2023 }}")
Exercise
Nov 19'23
Answer
Solution: D
Let C be the redemption value and [math]v = 1/(1+i)[/math]. Then
[[math]]
\begin{align*} X &= 1000r a_{\overline{2n}|i}+C\nu^{2n}\\ &=1000r\frac{1-\nu^{2n}}{i}+381.50\\ &=10000(1.03125)(1-0.5889^{2})+381.50 \\
&=1055.11
\end{align*}
[[/math]]
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