PLEASE HELP,
it may be very obvious to some of you but I am struggling
Cannot get my head around this notation
f( n-1,1) or f(1,n-1) what do these mean. I am used to f(2,1) or f(1,1)
Huge thanks
n typically stands for the last period and would be typically be provided. n could be for instance 5 and then you just plug in.
f(1,2) means a 2 year loan starting in 1 year, f(time until loan starts, length of the loan)
So n-1 from is equal to j+k ?
0 -------- j ----------- j+k