Lecture examples Week 5.xlsx

Lecture examples Week 5.xlsx - C(First Payment n i p e(rate...

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C (First Payment) $20,000.00 n 10 i 9.00% p 1.0 e (rate of growth in compound increasing) 3.81% i(p) 9.00% delta 8.62% =Ln(1+i) v 0.9174 =1/(1+i) i' 5.00% =(1+i)/(1+e)-1 v' 0.9524 =1/(1+i') Present Values Level arrears with C=$1: a subn 6.42 Increasing, arrears: (Ia) subn $615,808.63 Increasing, in advance $671,231.40 =(1+i) (Ia) subn Continuous Increasing: ( Ia bar) subn $643,122.05 =C (Ia) subn x i/delta Continuous Increasing: ( I bar a bar) subn $575,136.47 Compound Increasing: (Ia) subn $148,770.17 =(1-v n )/i =C((1+i)asubn -nv n )/i =C(asubn x i/delta -nv n )/delta =C/(1+e)x(1-v' n )/i'
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Level Annuities Payment $1.00 $1.00 n 10 10 i 5.00% 5.00% p 1.0 1.0 i(p)
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