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  3. 1. (a) the force of interest, 8(6), is a function

1. (a) The force of interest, 8(6), is a function of time and at any...

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1. (a) The force of interest, 8(6), is a function of time and at any time t, measured in years, is given by the formula 10.07 -0.0021, 07. Calculate the present value at time t = 0 of a continuous payment stream payable at a rate of 900.024 kwacha per annum from time t = 8 to time t = 12. (b) An individual can obtain a force of interest per annum at time t, measured in years, as given by the formula 10.07 +0.0094, 0 5. (i) Determine the amount the individual would need to invest at time t = 0 in order to receive a continuous payment stream of K200,000 per annum from time t = 8 to time t = 10. (ii) Determine the equivalent constant annual effective rate of interest earned by the individual in part (i). 1 (C) The force of interest at any time t (measured in years) is given by 0.02 0 6. RE

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