Actuarial Science 2053 Chapter Notes - Chapter 2: Eof, Urs, University Of Western Ontario
20 Jan 2016
School
Department
Course
Professor
Document Summary
You owe in 2. 5 years and in 4 years. It is agreed that you will instead pay. today and another in 39 months. A loan of is due in 3 years with interest at j4 = 10%. Suppose instead that the loan is to be repaid with 2 equal payments, the first at the end of 1 year and the second at the end of 2 years. There are two major di erences in this type of question compared to. Example 2. 6. 1: you are given the original loan. A loan of is taken out today and is due with interest at j12 = 6% in 2-years. Instead, it is agreed that you will make a payment of in. 6-months and pay off the balance owing in 18- months. due on a given date at a given compound interest rate, i, is equivalent to due n- interest periods later if.
