The force of interest, δ(t), is a function of time and at any time t, measured in years, is given by the formula:
{ 0.03 + 0.005t 0 ≤ t < 2
δ(t) = { 0.045 - 0.0025t 2 ≤ t < 10
{ 0.02 t ≥ 10
Which of the following is the present value at time t = 0 of a continuous payment stream payable at a rate of 60exp(0.02t) from time t = 10 to time t = 12?
