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now that log (1.05)-log(1 250 log (1.15) - 125 log a = b 1 = ompute A(0,7) and hence compute the d 50 due at t = 7. ompute A(6,7). What is the equivalent co

now that log (1.05)-log(1 250 log (1.15) - 125 log a = b 1 = ompute A(0,7) and hence compute the d 50 due at t = 7. ompute A(6,7). What is the equivalent co

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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3. * The force of interest 8(t) at time t (measured in years) is a +bt² where a and b are constants. An amount of £200 at time t = 0 accumulates to £210 at t = 5 and £230 at t = 10. (a) Show that a = b t log (1.05) -log(1.15) = 0.008352, 30 log(1.15) -log(1.05) 0.0001687. = 1 = 250 = (b) Compute A(0,7) and hence compute the discounted value at t = £750 due at t = 7. (c) Compute A(6,7). What is the equivalent constant annual interest rate for the year from t = 6 to t = 7? and (d) Calculate the constant force of interest that would give rise to the same accumulation from 0 to t = 10. 0 of a payment of
Transcribed Image Text:3. * The force of interest 8(t) at time t (measured in years) is a +bt² where a and b are constants. An amount of £200 at time t = 0 accumulates to £210 at t = 5 and £230 at t = 10. (a) Show that a = b t log (1.05) -log(1.15) = 0.008352, 30 log(1.15) -log(1.05) 0.0001687. = 1 = 250 = (b) Compute A(0,7) and hence compute the discounted value at t = £750 due at t = 7. (c) Compute A(6,7). What is the equivalent constant annual interest rate for the year from t = 6 to t = 7? and (d) Calculate the constant force of interest that would give rise to the same accumulation from 0 to t = 10. 0 of a payment of
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