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Math Help - Finance/Actuarial question - on the accumulation function

  1. #1
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    Finance/Actuarial question - on the accumulation function



    Any help is much appreciated!
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  2. #2
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    Quote Originally Posted by cirrus74 View Post


    Any help is much appreciated!
    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.

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

    Can you solve for such an integral?
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  3. #3
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    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

    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.
    Last edited by cirrus74; April 9th 2008 at 01:54 PM.
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  4. #4
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    Accumulated value of the continuous annuity is:

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