Question
1. (10 points) Am investor makes deposits in the following two accounts: Account 1: Two deposits: 500 at time 2 years from now and
1. (10 points) Am investor makes deposits in the following two accounts: Account 1: Two deposits: 500 at time 2 years from now and 1000 at time 5 years from now, assuming a force of interest d , t 0, and t is measured in years. 0.4 1+0.2t = Account 2: Two deposits: 90 at time n years from now, and 180 at time 5n years from now, where n is a positive real number. It is assumed an effective annual discount rate of 2%. If the accumulated value at time 16 years from now in account 1 is equal to the accumulated value at time 9n years from now in account 2, calculate n.
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I prt 100 I 500X 04 x 2 10020t I HOD 10020t 400 100 thot 11 A 2000 10020t E 5 Afterest rate I 500X ...Get Instant Access to Expert-Tailored Solutions
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Fundamentals of Engineering Economics
Authors: Chan S. Park
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132775425, 132775427, 978-0132775427
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