It is known that the accumulation function a(t) = At2 + B. If RM100 is invested at time 0, the amount accumulates to RM172 at time 3. If RM100 is invested at time 5, find the accumulated value at time 10. (a) In return for payments of RM2000 at the end of 4th year and RM5000 at the end of 10th year, an investor agrees to pay RM3000 immediately and to make an additional payment at the end of 3rd year. Find the amount of the additional payment if the nominal rate of interest is 6% convertible quarterly. (b)
It is known that the accumulation function a(t) = At2 + B. If RM100 is invested at time 0, the amount accumulates to RM172 at time 3. If RM100 is invested at time 5, find the accumulated value at time 10. (a) In return for payments of RM2000 at the end of 4th year and RM5000 at the end of 10th year, an investor agrees to pay RM3000 immediately and to make an additional payment at the end of 3rd year. Find the amount of the additional payment if the nominal rate of interest is 6% convertible quarterly. (b)
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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Transcribed Image Text:It is known that the accumulation function a(t) = At² +B. If RM100 is invested
at time 0, the amount accumulates to RM172 at time 3. If RM100 is invested at
time 5, find the accumulated value at time 10.
(a)
In return for payments of RM2000 at the end of 4th year and RM5000 at the
end of 10th year, an investor agrees to pay RM3000 immediately and to make
an additional payment at the end of 3rd year. Find the amount of the additional
payment if the nominal rate of interest is 6% convertible quarterly.
(b)
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