The sum of the present value of 1 paid at the end of n periods and 1 paid at the end of 2n periods is 1. Find (1 i) 2n

Step-by-step explanation:

Using Present Value formula, we have that:

The present value at end of n period is

The present value at end of 2n period is

And

So, we have:

Substitute values for PV1 and PV2

Solving for:

This can be expressed as

Let

So, we have:

Equate to 0

Using quadratic formula:

Where A=1; B =1 and C = -1

Recall that:

So, we have:

Invert both sides

Square both sides

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step-by-step explanation: