MATH 2FM3 Lecture Notes - Lecture 10: Vehicle Identification Number
22 Oct 2015
School
Department
Course
Professor
Document Summary
2. 2. 3 continuous annuities (continued: example: in 2004 and 2005 you deposit 12 every day and in 2006 you deposit 15 every day. The e ective annual interest is 9% in 2004 and 2005 and 12% in 2006 with daily compounding. Then (1 + j1)365 = 1. 09 whence j1 = 0. 0002 and (1 + j2)365 = 1. 12 whence j2 = 0. 0003. 12s730(cid:101)j1 (1. 12) + 15s365(cid:101)j2 = 16, 502. 59. (b) with continuous deposits, the total per year in 2004 2005 is 12 365 = 4380 and. 0 in 2006 is 15 365 = 5475. 4380 s2(cid:101)0. 09 (1. 12) + 5475 s1(cid:101)0. 12 = 16, 504. 75: the present value at the time payment begins of a continuous annuity paying at rate 1. 2. 2. 4, 2. 2. 5 equations of annuities: let m be the accumulated value of an annuity with n payments of amount j each with an interest rate i per payment period:
