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A discount function is defined as follows:a (t) = 1/(1+ .01t), where t > 0. A five-year annuity has payments of i at times, t = 1, 2, 3. 4, and 5. To calculate the present value of the annuity, a student first accumulates the payments according to the following accumulation function, where t is the length of the accumulation period: a(t) = 1+.01t. The student then multiplies the result by a (5). By how much does the student's calculated value exceed the correct value of the annuity at time t = 0? (Answer to nearest .0001.) Posible Answers A 0494 8.0018 D0018 .0494

A discount function is defined as follows:a (t) = 1/(1+ .01t), where t > 0. A five-year annuity has payments of i at times, t = 1, 2, 3. 4, and 5. To calculate the present value of the annuity, a student first accumulates the payments according to the following accumulation function, where t is the length of the accumulation period: a(t) = 1+.01t. The student then multiplies the result by a (5). By how much does the student's calculated value exceed the correct value of the annuity at time t = 0? (Answer to nearest .0001.) Posible Answers A 0494 8.0018 D0018 .0494

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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A discount function is defined as follows:a (t) = 1/(1+.01t), where t > 0. A five-year annuity has payments of I at times, t 1, 2, 3. 4, and 5. To calculate the present value of the annuity, a student first accumulates the payments according to the following accumulation function, where t is the length of the accumulation period: a(t) = 1+.01t. The student then multiplies the result by a (5). By how much does the student's caleulated value exceed the correct value of the annuity at time t = 0? (Answer to nearest .0001.) Possible Answers -.0494 .0018 D0018 .0494
Transcribed Image Text:A discount function is defined as follows:a (t) = 1/(1+.01t), where t > 0. A five-year annuity has payments of I at times, t 1, 2, 3. 4, and 5. To calculate the present value of the annuity, a student first accumulates the payments according to the following accumulation function, where t is the length of the accumulation period: a(t) = 1+.01t. The student then multiplies the result by a (5). By how much does the student's caleulated value exceed the correct value of the annuity at time t = 0? (Answer to nearest .0001.) Possible Answers -.0494 .0018 D0018 .0494
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