4 years ago

Why are mathematicians like airlines?

1 answer:

ipn [44]4 years ago

8 0

They both use planes.

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AysviL [449]

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kirill [66]

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kiruha [24]

Answer:

Calculate the Macaulay duration of Annuity B at the time of purchase is 1.369.

Step-by-step explanation:

First, we use 0.93 to calculate the v which equals 1/(1+i).

$\frac{0+1*v+2v^{2} }{1+v+v^{2} }$ = 0.93

After rearranging the equation, we get 1.07 $v^{2}$ + 0.07v - 0.93=0

So, v=0.9

Mac D: $\frac{0+1*v+2*v^{2}+ 3*v^{2} }{1+v+v^{2}+ v^{3} }$

After substituting the value of v, we get Mac D = 1.369.

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3 years ago