Tagged Questions
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How to convert interest rate to discount factor
I'm studying on Kellison's Theory of Interest and I'm stuck on the exercise 20/a of the 1st chapter.
If the $i=0.1$ then $d = 0.0901$
$d_5=\frac{A_5-A_4}{A_5}$
when I insert $d$ into this ...
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1answer
106 views
Derivation of formula for continues annuities
I'm currently working through a book on the Theory of Interest. Currently, I'm looking at continuous annuities, or annuities that are paid continuously. The book gives the following formula, the ...
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1answer
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Confused about Effective Rate of Discount- Theory of Interest
I'm currently reading Kellison's book, The Theory of Interest. I've reached the chapter on Effective Rate of Discount and it's somewhat confusing. The book explains it as a loan where interest is paid ...
