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An annuity is payable continuously for n years. The rate of payment is constant through each year and is as follows: 1 unit per annum during the first year; 2 units per annum during the second year; 3 units per annum during the third year; and so on until the final year n. Show that the present value of the annuity is given by: (la) n = än - nyn 8 Hint: You have to show your full workings from basic principles of valuing a constant payment stream.

An annuity is payable continuously for n years. The rate of payment is constant through each year and is as follows: 1 unit per annum during the first year; 2 units per annum during the second year; 3 units per annum during the third year; and so on until the final year n. Show that the present value of the annuity is given by: (la) n = än - nyn 8 Hint: You have to show your full workings from basic principles of valuing a constant payment stream.

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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An annuity is payable continuously for n years. The rate of payment is constant through each year and is as follows: 1 unit per annum during the first year; 2 units per annum during the second year; 3 units per annum during the third year; and so on until the final year n. Show that the present value of the annuity is given by: (la)nl = än - nyn 8 Hint: You have to show your full workings from basic principles of valuing a constant payment stream.
Transcribed Image Text:An annuity is payable continuously for n years. The rate of payment is constant through each year and is as follows: 1 unit per annum during the first year; 2 units per annum during the second year; 3 units per annum during the third year; and so on until the final year n. Show that the present value of the annuity is given by: (la)nl = än - nyn 8 Hint: You have to show your full workings from basic principles of valuing a constant payment stream.
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