Question: Can someone please help me with this question. I legit got no clue. Question 5 A company expects to receive the following payments from a

 Can someone please help me with this question. I legit got

Can someone please help me with this question. I legit got no clue.

Question 5 A company expects to receive the following payments from a customer: 10,000 on 1.4.2017 4,500 on 1.7.2018 3,200 on 1.1.2022 The current date is 1 July 2016. This date represents t = 0, and hence 1 July 2017 ist 1. Assume that the discount function v(t) runs from time to time t and is given by: (O) = 1- 2 (a) Find the value of each payment as at 1 January 2020 (5 marks) (b) Using the results from (a), or otherwise, find the value of all payments at 1 July 2023. [2 marks) (c) Let p(t) represent a continuous payment of 200 per unit time. This is paid betweent1 and t = 4. Now let (s) be the force of interest and is represented by 8(s) = 0.1 + Bs. Write down an integral that represents the accumulated value at t = b (where b>4) for this continuous payment. [3 marks) [Total: 10 marks]

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!