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A continuously paying level annuity pays $50 each year for ten years The force of interest delta is 1 Find the Present Value of this annuity I know that the answer is

A continuously paying level annuity pays $50 each year for ten years. The force of interest (delta) is (1-t)^-1. Find the Present Value of this annuity. I know that the answer is $119.89 but I don't know how to get there. I know that you have (1-e^-(delta*n)) will equal v and that the Present Value can be calculated by (1-v^n)/delta but I am not sure what the value of n would be if 10 is the t value.

 

May 17 2020 View more View Less

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