1. Calculate the present value on 1 September 2002 of payments of Kshs.280 due on 1 September 2004 and Kshs.360 due on 1 March 2005. Interest is 15% pa effective. (465.56)

2. Find the value at time t=0 of Kshs.250 due at time t=6 and Kshs600 due at time t=8 if pa for all t. (680.79)

3. Find the value at time 4 of a payment of 860 at time 10 if and (718.24)

4. Under its current rent agreement a company is obliged to make annual repayments of 7,500 for the building it occupies. Payments are due on 1st January 2004, 1st January 2005 and 1st January 2006. The nominal rate of interest is 8% per annum, convertible quarterly.

a. What is the present value of the payments on 1st January 2003? (19,243.72)

b. What is the accumulated value of these payments on 1st January 2007? (26,418)

5. The force of interest takes the following values:

{

Calculate the accumulation of 150 from time t=0 to time t=20. (466)

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