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Any help is much appreciated!

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- Apr 9th 2008, 03:59 AMcirrus74Finance/Actuarial question - on the accumulation function
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Any help is much appreciated! - Apr 9th 2008, 04:48 AMcolby2152
The accumulate value after 10 periods is the sum of all the future value factors, or one unit projected at a given interest. Our interest is both continuous and variable, so an integral is needed for the sum.

$\displaystyle \int _1 ^{10} e^{\delta t} dt$

Can you solve for such an integral? - Apr 9th 2008, 01:41 PMcirrus74
Thank you. I did as you suggested and solved for that function, but the answer comes up to 1.9 which isn't the answer (Shake)

exp(-ln(20 - 10)+ ln(20-1)) = exp (ln(19/10)) = 19/10

Did I make a mistake somewhere? Also why are the limits not from 0 to 10?

Sorry for double posting. - Apr 9th 2008, 08:23 PMmathceleb
Accumulated value of the continuous annuity is:

$\displaystyle \frac{e^{n\sigma} - 1}{\sigma}$