TRUE OR FALSE 1. Under deterministic approach (one which investments are not subject to financial risks), the time value of money is strictly increasing. 2. An accumulation function a(t), for t ≥ 0, has a jump if it does not pay interest between two payment dates. 3. The function a(t)=t^3+2t^2+3 is a valid accumulation function for all t≥0.
TRUE OR FALSE 1. Under deterministic approach (one which investments are not subject to financial risks), the time value of money is strictly increasing. 2. An accumulation function a(t), for t ≥ 0, has a jump if it does not pay interest between two payment dates. 3. The function a(t)=t^3+2t^2+3 is a valid accumulation function for all t≥0.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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TRUE OR FALSE
1. Under deterministic approach (one which investments are not subject to financial risks), the time value of money is strictly increasing.
2. An accumulation function a(t), for t ≥ 0, has a jump if it does not pay interest between two payment dates.
3. The function a(t)=t^3+2t^2+3 is a valid accumulation function for all t≥0.
4. If X is deposited at time s (s>0) then its accumulated value at time t (t>s) is X⋅[a(t)/a(s)].
5. If I_n is the interest earned during the nth period then the interest earned from time s to time t (0<s<t) is given by the difference I_t - I_s.
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