Title Statix Academy CM1B Chapter 5 Assignment.pdf ✅

Chapter 5: Discounting and Accumulating CM1B Assignments – By Nachiket Kulkarni Sir Page 1 of 2 1. i) Use a spreadsheet to calculate the values of i (p) , (p = 3,6,12), d (p) , (p = 3,6,12), d and δ based on an input value of i = 6%. Express your answers as a percentage to 4 decimal places. ii) Use a spreadsheet to calculate the values of i (p) , (p = 3,6,12), d (p) , (p = 3,6,12), i and δ based on an input value of d = 5%. Express your answers as a percentage to 4 decimal places. 2. Jin-Woo invests a lumpsum of 6,500 in a bank at time 0. i) Determine the value of the investment at time t = 1,2,3, ... ,15, assuming that the nominal rate of interest is 4.5% p.a. convertible quarterly. ii) Determine the value of the investment at time t = 1,2,3, ... ,15, assuming that the nominal rate of discount is 7% p.a. convertible semi-annually. iii) Draw a single graph to show the accumulated values of the investment at time t = 0,1,2,3, ... ,15 years at a) an annual effective interest rate of 3% p.a. b) an annual effective discount rate of 3.5% p.a. c) a nominal interest rate of 5% p.a. convertible monthly. d) a nominal discount rate of 4% p.a. convertible semi-annually. e) a constant force of interest of 2% p.a.