Fund A) has force of interest St = .024t (where t is in years) while fund B) earns a nominal discount rate of d(365) compounded daily. Find d(365) if $100 is deposited at t = 0 in both funds, and both funds have the same accumulated value when t = 3. Also find the equivalent effective annual interest rate for the 3 year period.
Fund A) has force of interest St = .024t (where t is in years) while fund B) earns a nominal discount rate of d(365) compounded daily. Find d(365) if $100 is deposited at t = 0 in both funds, and both funds have the same accumulated value when t = 3. Also find the equivalent effective annual interest rate for the 3 year period.
Chapter6: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 8RE: Suppose an investment account is opened with aninitial deposit of 10,500 earning 6.25...
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Transcribed Image Text:Fund A) has force of interest St = .024t (where t is
in years) while fund B) earns a nominal discount
rate of d(365) compounded daily. Find d(365) if
$100 is deposited at t = 0 in both funds, and both
funds have the same accumulated value when t =
3. Also find the equivalent effective annual interest
rate for the 3 year period.
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