Chap 4

Question 1

Simple interest AV

Answer 1

AV = X(1+ti)

Question 2

Compound interest AV

Answer 2

X(1+I)^t

Question 3

PV compound interest

Answer 3

V^t = X/ (1+I)^t 
Or X(1+I)^-t

Question 4

Simple interest pv

Answer 4

(1 + ti)^-1

Question 5

Relationship between v and I

Answer 5

V = 1/1+i

Question 6

Relationship between v and d

Answer 6

V= 1-d

Question 7

Relationship between i and V

Answer 7

I= 1/V -1

Question 8

Relationship between d and i

Answer 8

D = I/1+I

Question 9

Relationship d and v

Answer 9

D = 1-v

Question 10

PV using rate of discount

Answer 10

PV = (1-d)^t

Question 11

Av using rate of discount

Answer 11

AV = (1-d)^-t

Question 12

Force of interest using i

Answer 12

Alpha = ln(1+i)

Question 13

Relationship between i and alpha

Answer 13

1+i = e^alpha

Question 14

Relationship between v and I

Answer 14

V = (1+i)^-1 = e^-alpha

Question 15

Accumulating/ Av using a force of interest

Answer 15

AV = e^alpha*t

Question 16

PV / discounting using force of interest

Answer 16

PV = e^-alpha*t

Question 17

AV using varying force of interest

Answer 17

A (t) = exp ^int alpha

Between 0 and t

Question 18

Discounting using varying force of interest

Answer 18

PV = exp^- integrate alpha

Beteeen 0 and t