Financial Mathematics → Force of Interest
In basis for continuous interest we noted that as h becomes smaller and smaller, ih(t) tends to a limiting value, say δ(t)
Mathematically,
And, as
We can also define δ(t) in terms of accumulation factor
Financial Mathematics → Force of Interest
In basis for continuous interest we noted that as h becomes smaller and smaller, ih(t) tends to a limiting value, say δ(t)
Mathematically,
And, as
We can also define δ(t) in terms of accumulation factor