
The extensions to continuous functions follow the outline in Chapter 3 and
will not be repeated here.
THE TABLES FOR AMOUNT OF ANNUITY
Look at pages 135 to 142 for the amount (future value) of an annuity. You can
see that as the interest rate i increases, the future value increases, because the
amount deposited earns at a higher rate. As the number of periods increases,
the amount increases, for two reasons. First, more payments have been made
into the fund; second, the fund has been earning for a longer period.
SOME INVESTMENT POLICY IMPLICATIONS
You can see that as time passes, the fund increases. However, the contribution
to the fund remains at 1. ...