DMT(i)of solved example on pg22 summation why do you add redemption with no of years hhow do you get negative derivative of solved egon page 30 Pv^5+Qv^10=62418 because derivative formula implies x^n=nx^n-1 quest no 14.5 how do you get (1+y3)^3(1+f3)(1+f4,3)^3=(1+y7)^7 please do help me out
You are right derivative formula implies x^n =nx^n-1 Here we take derivative with respect to i ,in the equestion -V'(A)=Pv^5+Qv^10 =P(1+i)^-5 +Q(1+i)^-10 =-5P(1+i)^-6+(-10)Q(1+i)^-11 =-5Pv^6-10Qv^11 V'(A) = 5Pv^6+10Qv^11 (1+f4,3)^3=[1+y(4+3)]^(4+3)/[1+y4]^4 [1+y4]^4*(1+f4,3)^3=[1+y7]^7 ...............(1) according to (1+f3,1)=[1+y4]^4/[1+y3]^3 [1+y4]^4=(1+f3,1)*[1+y3]^3 putting this value in equation (1) (1+f3)*[1+y3]^3*(1+f4,3)^3=[1+y7]^7
