Homework Answers
Initial Investment = $ 1000, a(t) = 0.1 x (t)^(2) + 1 and Tenure of Investment = t = 8 years
Final Value of Initial Investment when t = 8 will be FV(8) = 1000 x [0.1 x (8)^(2) + 1] = $ 7400
An amount $ X is invested at t=6 and the total value of both investments is $ 18000 at t=8, of which $ 7400 is from the initial investment. Remaining is the final value of investment X
Therefore, FV(X) = 18000 - 7400 = $ 10600
The investment X is made for a duration of 2 years (8-6 = 2) and hence the appropriate value of t in a(t) is 2
Therefore, X x [0.1 x (2)^(2) + 1] = 10600
X = 10600 / 1.4 ~ $ 7571.43
Add Answer to:
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#4 please accumuldeu vdiu ul ŞSU at time t = 4. (b) For the $5000 invested...
#4 please
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Problem 1 Suppose there is a
series of cashflows that lasts n + 1 periods, {at}t , 0 ≤ t ≤ n,
and that is growing at constant rate g, i.e. at = (1 + g) ta0, ∀t.
The discount rate is fixed at r and assume g < r. Find an
expression for the discounted present value of the cashflows at
time 0. Formally, find an expression for S = a0 + a1 1+r + ... + an
(1+r)...
Problem 5-41 a. Find the FV of $1,000 invested to eam 10% after 5 years. Answer...
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1. Let S(t) be the value of an investment at time t and let r be...
1. Let S(t) be the value of an investment at time t and let r be the annual interest rate, with interest being compounded after every time interval At. Let k be the annual deposit which has an installment made after each time interval At. Then, the value of the investment at time t + At, i.e. S(t + At), is given by: S(t + At) = S(t) + (rAt)S(t) + kAt Amount at the end of time t Interest...
Problem 1 Suppose there is a series of cashflows that lasts n + 1 peri- ods, {at}t, 0 < t <n, and that is growing...
Problem 1 Suppose there is a series of cashflows that lasts n + 1 peri- ods, {at}t, 0 < t <n, and that is growing at constant rate g, i.e. At = (1 + g)tao, Vt. The discount rate is fixed at r and assume g < r. Find an expression for the discounted present value of the cashflows at time 0. Formally, find an expression for S = 20 + 141 + ... + (147) ma al αη 1+r
Can you do this on MATLAB please? Thanks. (1) [20 pts] Find the exact solution to the Initial Boundary- Value problem utV x E (0,1), t>0, a(0, t)=0, a(i, t) = 0, t>0, t 20. Write the scheme and...
Can you do this on MATLAB please? Thanks.
(1) [20 pts] Find the exact solution to the Initial Boundary- Value problem utV x E (0,1), t>0, a(0, t)=0, a(i, t) = 0, t>0, t 20. Write the scheme and a code (forward in time, center in space) to approximate the solution of this prob- lem for u = 1/6. Take ΔⅡ 0.1 and compare your results with the exact solution at t = 0.01, 0.1, 1, 10 with At0.01
(1)...
Additional Problem 9. Suppose ZN(0, 1). (a) Show that the mgf of Z is M2(t)-er. Hint:...
Additional Problem 9. Suppose ZN(0, 1). (a) Show that the mgf of Z is M2(t)-er. Hint: Complete the square and use the fact that any normal density integrates to one. (b) Let X ~ N( -). Use the mgf of Z to find the mgf of X. Hint : X=μ+oZ
11. $1,000 is invested for 20 years. For years 1-5, the investment rate is i(2)=11%. For years 6-10, the investment rate is 8=6%. For years 11-15, the investment rate is d(4)=14%. For years 16-20, the investment rate is i=8%. Find the accumulated value of the investment at the end of the 20 years.
#4 please
accumuldeu vdiu ul ŞSU at time t = 4. (b) For the $5000 invested in time t = 1, find the amount of interest earned during the third year of investment, i.e., between times t = 3 and t = 4. 4. It is known that a(t) if of the form at2 + bt + c. If $100 invested at time 0 accumulates to $300 at time 2 and $700 at time 4 , find the accumulated value...
Problem 1.4 (10 points) Consider a series of payments of $1,000 at the random arrival times of a Poisson process with parameter λ > O. If the (continuously compounded) interest rate is >0, then the present value at time 0 of a payment of $1,000 at time t is given by 1,000e-r Show that the expected total present value at time 0 of the series of payments made by time t>0 is given by $1,000x(1-e-')/r.
Problem 1.4 (10 points) Consider...
Problem 1 Suppose there is a
series of cashflows that lasts n + 1 periods, {at}t , 0 ≤ t ≤ n,
and that is growing at constant rate g, i.e. at = (1 + g) ta0, ∀t.
The discount rate is fixed at r and assume g < r. Find an
expression for the discounted present value of the cashflows at
time 0. Formally, find an expression for S = a0 + a1 1+r + ... + an
(1+r)...
Problem 5-41 a. Find the FV of $1,000 invested to eam 10% after 5 years. Answer this question by using a math formula and also by using the Excel function wizard. Now create a table that shows the FV at 0%, 5%, and 20% for 0, 1, 2, 3, 4, and 5 years. Then create a graph with years on the horizontal axis and FV on the vertical axis to display your results. c. Find the PV of $1,000 due...
1. Let S(t) be the value of an investment at time t and let r be the annual interest rate, with interest being compounded after every time interval At. Let k be the annual deposit which has an installment made after each time interval At. Then, the value of the investment at time t + At, i.e. S(t + At), is given by: S(t + At) = S(t) + (rAt)S(t) + kAt Amount at the end of time t Interest...
Problem 1 Suppose there is a series of cashflows that lasts n + 1 peri- ods, {at}t, 0 < t <n, and that is growing at constant rate g, i.e. At = (1 + g)tao, Vt. The discount rate is fixed at r and assume g < r. Find an expression for the discounted present value of the cashflows at time 0. Formally, find an expression for S = 20 + 141 + ... + (147) ma al αη 1+r
Can you do this on MATLAB please? Thanks.
(1) [20 pts] Find the exact solution to the Initial Boundary- Value problem utV x E (0,1), t>0, a(0, t)=0, a(i, t) = 0, t>0, t 20. Write the scheme and a code (forward in time, center in space) to approximate the solution of this prob- lem for u = 1/6. Take ΔⅡ 0.1 and compare your results with the exact solution at t = 0.01, 0.1, 1, 10 with At0.01
(1)...
Additional Problem 9. Suppose ZN(0, 1). (a) Show that the mgf of Z is M2(t)-er. Hint: Complete the square and use the fact that any normal density integrates to one. (b) Let X ~ N( -). Use the mgf of Z to find the mgf of X. Hint : X=μ+oZ
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