In a book about finance, the following formula appears:
$$\large a_{10 \,⌉\, 0.04}$$
What is this ⌉ operator and how to read / calculate it?
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This just a notation in Actuarial sciences
$a_{\overline{n|}i} := v + v^2 + \cdots + v^n = \frac{1-v^n}{i}$ , where $v:=\frac{1}{i+1}$
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So,
$a_{\overline{10|}0.04}=\frac{1-(1+0.04)^{-10}}{0.04} \approx 8.111$
AHH
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How would you apply this to my example? – Alexander Rechsteiner Nov 24 '13 at 14:54
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Easy: n=10, i=0.04 => $a_{\overline{10|}0.04}=\frac{1-(1+0.04)^{-10}}{0.04}$ – AHH Nov 24 '13 at 17:01
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Perfect. Thank you very much. :) – Alexander Rechsteiner Nov 24 '13 at 17:54