Question
At time 0, Heather invests $750 into Fund A that pays a varying force of interest of 0.09t until the end of the third year;
At time 0, Heather invests $750 into Fund A that pays a varying force of interest of 0.09t until the end of the third year; after the third year, it pays an annual effective discount rate of 5.5% for three more years. Jane deposits $900 into Fund B that pays a constant force of interest, , for the first four years, and after that, pays an annual effective interest rate of 8.5% for three more years. Over the duration of her investment, Heather earned 25% more interest than Jane earned over the duration of her investment. Calculate .
Not Hand written Solution.
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