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Two funds, A and B, start with the same amount. Fund A grows at an annual interest rate of i > 0 for n years,
Two funds, A and B, start with the same amount.
Fund A grows at an annual interest rate of i > 0 for n years, and at an annual interest rate of j >0 for the next n years.
Fund B grows at an annual interest rate of k>0 for 2n years.
Fund A equals 1.5 times fund B after n years. The amount in the two funds are equal after 2n years.
Which of the following are true?
(I) j
(II) k
(III) j = k(2/3)^(1)
Note: The arithmetic-geometric average inequality states that (x + y)/2 xy
Two funds, A and B, start with the same amount. Fund A grows at an annual interest rate of i > 0 for n years, and at an annual interest rate of j > 0 for the next n years. Fund B grows at an annual interest rate of k >0 for 2n years. Fund A equals 1.5 times fund B after n years. The amount in the two funds are equal after 2n years. Which of the following are true? I. jxy. 2 A I and II only B I and III only II and III only D I, II and III E The correct answer is not given by (A), (B), (C) or (D)Step by Step Solution
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