Calculate the total value as at 1/1/22 of $10,500 deposited on 1/1/18 and $15,000 promised...
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Calculate the total value as at 1/1/22 of $10,500 deposited on 1/1/18 and $15,000 promised on 1/1/26, given (i) a nominal interest rate of 10% per annum convertible quarterly, (ii) a force of interest of 10% per annum, or (iii) a force of interest decreasing linearly from 15% per annum on 1/1/18 to 5% % per annum on 1/1/26. Explain in words in your Word document the reason for the difference in result between scenario (iii) compared to scenarios (i) and (ii). Calculate the total value as at 1/1/22 of $10,500 deposited on 1/1/18 and $15,000 promised on 1/1/26, given (i) a nominal interest rate of 10% per annum convertible quarterly, (ii) a force of interest of 10% per annum, or (iii) a force of interest decreasing linearly from 15% per annum on 1/1/18 to 5% % per annum on 1/1/26. Explain in words in your Word document the reason for the difference in result between scenario (iii) compared to scenarios (i) and (ii)
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