Fund A of $ 5,000 grows with an instant interest rate of St =1/(12-t) for 0

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter6: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 4PT: An investment account was opened with aninitial deposit of 9,600 and earns 7.4 interest,compounded...
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Fund A of $ 5,000 grows with an instant interest rate of St = 1/ (12-t)
for 0 <t <12.
B fund of $ 5,000 grows with an annual interest rate of 4% for the first
3 years according to a simple interest rate, and an annual effective
interest rate of "i" for the following years.
At the end of the 5th year, calculate the "i" interest rate since the
values of A and B funds are equal.
Transcribed Image Text:Fund A of $ 5,000 grows with an instant interest rate of St = 1/ (12-t) for 0 <t <12. B fund of $ 5,000 grows with an annual interest rate of 4% for the first 3 years according to a simple interest rate, and an annual effective interest rate of "i" for the following years. At the end of the 5th year, calculate the "i" interest rate since the values of A and B funds are equal.
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