Explain different approaches to modelling
Explain different approaches to modelling in Quantitative Finance.
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Here’s a list of the different approaches to modelling:
Modelling approaches:
• Deterministic• Probabilistic• Continuous: differential equations• Discrete: difference equations
$100 is received at the beginning of year 1, $200 is received at the beginning of year 2, and $300 is received at the beginning of year 3. If these cash flows are deposited at 12 percent, their combined future value at the end of year 3 is ________.
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