An introductory course for actuaries, I hope to get a detailed answer process and ideas. I gave the correct answer, I just want the process. 2. Assume a fund accumulates at a force of interest given by & = .02t. Find the effective rateof interest during the second year. What is the value at time t = 5 of an investment of 1000made at time t = 2.%3D%3!Answers: 3.045%, 1233.68

Force of interest (δ) = 0.02t Let the effective interest rate in second year = r For that, we need…

2. Assume a fund accumulates at a force of interest given by 6 .02t. Find the effective rate of interest during the second year. What is the value at time t = 5 of an investment of 1000 made at time t= 2.

2. Assume a fund accumulates at a force of interest given by 6 .02t. Find the effective rate of interest during the second year. What is the value at time t = 5 of an investment of 1000 made at time t= 2.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 23E: Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The...

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An introductory course for actuaries, I hope to get a detailed answer process and ideas. I gave the correct answer, I just want the process.

2. Assume a fund accumulates at a force of interest given by & = .02t. Find the effective rate
of interest during the second year. What is the value at time t = 5 of an investment of 1000
made at time t = 2.
%3D
%3!
Answers: 3.045%, 1233.68

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