Discounted Mean Term

Discussion in 'CT1' started by paryas.bhatia, May 15, 2014.

  1. paryas.bhatia

    paryas.bhatia Member

    Please help me solve this equation to find the DMT.
    The equation of present value= 35000v^13+v^10*15000(a due 10 payable half yearly) @6% effective.

    Please specify the numerator of the DMT in detail.
     
  2. Hemant Rupani

    Hemant Rupani Senior Member

    for this type of situation,
    there are two ways
    i) work yearly
    \[35000\times13\times v^{13}+15000\times(10\times v^{10}+10.5\times v^{10.5} ............) \] so on

    ii) work semi-annualy,
    \[35000\times 26\times v^{26}+15000\times(20\times v^{20}+21\times v^{21} .............) \]
    and then apply Ia
    then divide solution by 2 to get annual term.
     
    Last edited: May 15, 2014
  3. paryas.bhatia

    paryas.bhatia Member

    Got it. Thanks.:)
     

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