Calculate the present value at time 0 of a 10-year continuous annuity with a payment rate of $300 per annum under an effective annual rate of 1.9804%.
A recurrence relation is an equation that recursively defines a sequence of values, whereby each element of a sequence can be written as a function of preceding element(s); the first element of the sequence will be uniquely defined by an initial value of the recurrence relation. Specifically, if a sequence un can be […]