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Suppose amount 1 grows according to a(t)=1.08t1.04t2 ?. Find the force of interest at time 3 , i.e. 3 ? (four decimals) Answer: Fund A
Suppose amount 1 grows according to a(t)=1.08t1.04t2 ?. Find the force of interest at time 3 , i.e. 3 ? (four decimals) Answer: Fund A accumulates at a simple interest rate of 6.8%. Fund B accumulates at an annual compound interest rate of 4.0%. Find the point in time at which the forces of interest on the two funds are equal? (2 decimals) Suppose amount 1 grows according to a(t)=1.08t1.04t2 ?. Find the force of interest at time 3 , i.e. 3 ? (four decimals) Answer: Fund A accumulates at a simple interest rate of 6.8%. Fund B accumulates at an annual compound interest rate of 4.0%. Find the point in time at which the forces of interest on the two funds are equal? (2 decimals)
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