Accumulation Factor Ratio

Financial Mathematics → Accumulation Factor Ratio

In Accumulation Factor we obtained the formula

$A = CA(t_1,t_2)$

In general,

Example 1. Let time be counted in years. $5000 are invested at time 0 and the proceeds at time 10 are $9000. Calculate A(6,10) if A(0,9)=1.8, A(2,4)=1.1, A(2,6)=1.32, and A(4,9)=1.45.
Solution:
We have to calculate