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We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang.
If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.
Suggest you ask something a bit more specific. Honest answer to your question is:
(a) when we want to value an annuity - and (b) by writing down the right one and with practice!!
Use the equation at the top of page 5. The right-hand-side is a function of i. The solution then uses trial and error to show the answer lies between 10% and 12%, before interpolating. We might be homing in on your problem - but again suggest you try to be a bit more specific. The formula is given in the solution and so the most obvious answer is to say "read the solution". You could explain which bit of the solution you don't understand. Just trying to help you be more efficient!!
£4,600 is invested at time 0 and the proceeds at time 10 are £8,200.
Calculate A(7,10) if A(0,9) = 1.8, A(2,4) = 1.1, A(2,7) = 1.32, A(4,9) = 1.45.
Please tell me solution for this question
Question No.-3.4
A continuous payment stream is such that the level rate of payment in year t is
100 ¥1.05t-1, t =1,2,…,10 . Calculate the present value of the payment stream as at its
commencement date, assuming a rate of interest of 10% pa.