ACTB40 Study Guide - Midterm Guide: University Of Toronto Scarborough
9 Jun 2019
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Instructions: there are 5 questions on 7 pages in total (including this cover sheet) for this exam, write your student number at the top of each page, answer all questions directly on the examination paper. Use the last pages if you need more space, and provide clear pointers to your work: show your intermediate work, and write clearly and legibly, read the questions carefully and answer the question that is being asked. The present values at time 0 of the following two cashflows are both equal to ,000, at an effective annual interest rate of i > 0. Cashflow a: ,000 at the end of year 10. Cashflow b: ,000 at the end of year n and ,000 at the end of year 2n. Find the present value at time 0 of ,000 at the end of year n+3 using the same interest rate i.
