Um, please could I get some help on this question? I actually have the solutions but I believe them to be wrong and I'd just like to check.
And I don't understand part(b) at all so could someone please explain it to me? Many thanks!
When calculating j, shouldn't b be 1.92308%?
And shouldn't the APVFB(0)=10000xE(v^T(1+b)^k))?
I don't understand any of part b, so any help would be much appreciated.