View Full Version : Course 2 # 1
11-09-2001, 12:03 PM
I can't even do # 1!!!! Can anyone give me a hint? I mean I can do it the very slow way by calculating interest year to year and then adding them all up, but what's the trick? it even looks lke an amortizaton problem !!!!
11-09-2001, 12:07 PM
#1 is a simple force of interest problem..
You can find the FV of 100 at time 3, and treat that as the PV at time 3. Then you find the FV of that PV at time 6 and subtract the PV from it. Do the same for X (find the FV of X at time 6 and subtract X from it) then you total it up.
Oh yeah, forgot to mention that when you calculate the FV of say, time 3 to time 6, you don't need to calculate it year by year!! You're supposed to integrate the force of interest from t=3 to t=6
<font size=-1>[ This Message was edited by: ayz75 on 2001-11-09 12:09 ]</font>
vBulletin® v3.7.6, Copyright ©2000-2013, Jelsoft Enterprises Ltd.