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Suppose you invest $2,500 in a fund earning 15% simple interest. Further suppose that you have the option at any time of closing this account
Suppose you invest $2,500 in a fund earning 15% simple interest. Further suppose that you have the option at any time of closing this account and opening an account earning compound interest at an annual effective interest rate of 9%. At what instant should you do so in order to maximize your accumulation at the end of five years? (Round your answer to two decimal places.) years How about if you wish to maximize the accumulation at the end of ten years? (Round your answer to two decimal places.) years Question 14 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.)
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