Problem:
Using the method of equated time, a payment of 100 at time t = 1 plus a payment of X at time t = 10 is equivalent to a payment of 100 + X at time t = 4. The above two payments of 100 and X are equivalent to a payment of 100 + X at time t = T using the exact method.
Required:
Question: Calculate T if the force of interest is delta = 0.07.
Note: Show supporting computations in good form.