Well, I've been studying for a week now, and discounts still make no sense (discount = oh, this shirt was $15, but it's on clearance for $5? Wow, a 66% discount! No, it apparently means I get interest at the start of a period, or I owe it at the start of a period. Not sure this will ever make sense conceptually to me)
Problem:
Find the accumulated value of 1 at the end of N years if delta = (1+t)^-1
I mean really, how easy can you get? Ok, I'll just say that the accumulated value from time 0 to T is the exponent of the integral from time 0 to time N of (1+t)^-1 dt, which is just ln (t) and therefore the integral is ln N - ln 0 ... but ln 0 is not defined and the universe implodes???
I guess I was just supposed to realize that the derivative of 1 + t is 1 and therefore the accumulation function is 1 + t so the answer is 1 + N
Problem:
Find the accumulated value of 1 at the end of N years if delta = (1+t)^-1
I mean really, how easy can you get? Ok, I'll just say that the accumulated value from time 0 to T is the exponent of the integral from time 0 to time N of (1+t)^-1 dt, which is just ln (t) and therefore the integral is ln N - ln 0 ... but ln 0 is not defined and the universe implodes???
I guess I was just supposed to realize that the derivative of 1 + t is 1 and therefore the accumulation function is 1 + t so the answer is 1 + N
Basic force of interest problem
