April 2010, Q8(i), Fund Value Calculation

Q:


Examiner’s Solution:


I am worried, why is it not as below:

Can anyone please help me understand, why are we not putting 52 on the top of the present value factor when payments into the fund are per week?

Thanks!!

 

As it occurring frequently, that is, weekly. So for ease, assume it is continually paid.

 

for any payment which is more than monthly more frequent then in month , we will take the payment being continuously paid