1. [10 marks] Assume the following force of interest: 5 = {0.04, for 0 1 ...

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1. [10 marks] Assume the following force of interest: 5₁ = {0.04, for 0 ≤1 ≤ 3, 0.06, for 3<t<10. (a) [5 marks] A continuously paying annuity has a payment rate of $75 per year for 5 years. Find the present value of this annuity. (b) 15 marks] A 10 year continuously paying annuity has a payment rate of $75 per year in the first 5 years and $100 per year in the last 5 years. Find the accumulated value of this annuity at the end of 10 years. 1. [10 marks] Assume the following force of interest: 5₁ = {0.04, for 0 ≤1 ≤ 3, 0.06, for 3<t<10. (a) [5 marks] A continuously paying annuity has a payment rate of $75 per year for 5 years. Find the present value of this annuity. (b) 15 marks] A 10 year continuously paying annuity has a payment rate of $75 per year in the first 5 years and $100 per year in the last 5 years. Find the accumulated value of this annuity at the end of 10 years.

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a 5 marks A continuously paying annuity has a payment rate of 75 per year for 5 years Find the prese... View the full answer