- #1
Patrick94
- 3
- 0
I have the summation (from i=0 to n) of (F[itex]_{t}[/itex])(R) / (1+d)^i
where F[itex]_{t}[/itex] = (F[itex]_{t-1}[/itex])[(R)(I[itex]_{p}[/itex]) +(1-R)(I[itex]_{r}[/itex])]
(The F[itex]_{t-1}[/itex] is referring to the value of F in the last period)
I want to find the value of R that maximizes the summation. So must I take the partial derivative wrt R? How do I do this?
Thanks
where F[itex]_{t}[/itex] = (F[itex]_{t-1}[/itex])[(R)(I[itex]_{p}[/itex]) +(1-R)(I[itex]_{r}[/itex])]
(The F[itex]_{t-1}[/itex] is referring to the value of F in the last period)
I want to find the value of R that maximizes the summation. So must I take the partial derivative wrt R? How do I do this?
Thanks