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Mr Smith has $10,000to invest at time t=0, and three ways to inest it. Investment account I is governed by compound interest with an annual
Mr Smith has $10,000to invest at time t=0, and three ways to inest it. Investment account I is governed by compound interest with an annual effective discount rate of 3%.Investment account II has a force of interest equal to. Investment account III is governed by the accumulation function . Mr Smith can transfer his money between the three investments at any time. What is the maximun amount he can accumulate at time t=5 ?
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