Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Fund A has a balance of $800 at time t=0 and its growth is determined by the following force of interest. t(A)=1+0.07t0.07 Fund B has
Fund A has a balance of $800 at time t=0 and its growth is determined by the following force of interest. t(A)=1+0.07t0.07 Fund B has a balance of $400 at time t=0, and its growth is determined by a force of interest t(B)=0.05t. Fund C has amount function A(C)(t)=A(A)(t)2A(B)(t) where A(A)(t) is the amount function giving the growth of fund A and A(B)(t) is the amount function giving the growth of fund B. The force of interest for fund C is t(C). Find 4(C) (Leave your answer in percent form. Round your answer to hundredth of a percent.) Question 15 What rate of annual effective interest does John earn if his money is invested in a bank that credits interest continuously at a rate of 3.75% ? (Round your answer to two decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started