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Ohio State University - All Campuses
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Mathematics 618
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chap2.pdf
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clifford y.
Created:
2010-02-09
Last Modified:
2010-02-09
File Size:
1
Views:
393
Related Textbooks:
John E. Freund's Mathematical Statistics with Applications (7th Edition)
Math 618 Notes Chapter 2 The father of all: 1 + r + r2 + r3 + ··· + rn?2 + rn?1 = 1 ? r n 1 ? r = rn ? 1 r ? 1 ? Level Payment Annuities, Annuity-Immediate ... ... ... ... K K K K K 0 1 2 3 n?1 n Kan|i Ksn|i ? Accumulated Value Ksn|i sn|i = (1 + i) n ? 1 i = 1 + (1 + i) + (1 + i) 2 + ··· + (1 + i)n?1 ? Present Value Kan|i an|i = 1 ? v n i = v + v 2 + v3 + ··· + vn where v = 1 1 + i ? Relations sn|i = (1 + i)nan|i , an|i = vnsn|i ? Deferred Annuity vkan| = an+k| ? ak| ? Perpetuity a?|i = limn??an|i = 1i ? Level Payment Annuities, Annuity-Due ... ... ... ... K K K K K 0 1 2 n?2 n?1 n K¨an|j K¨sn|j ¨sn|i = (1 + i) n ? 1 d = (1 + i) + (1 + i) 2 + (1 + i)3 + ··· + (1 + i)n ¨an|i = 1 ? v n d = 1 + v + v 2 + ··· + vn?2 + vn?1 ? Examples Exercises (2.1.4), (2.1.6), (2.2.3), (2.2.6)
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