1. An investor puts 100 into fund X at time zero and 100 into fund Y at time zero. Fund X accumulates according to compound interest with an annual effective rate of i. Fund Y accumulates according to simple interest with an annual effective rate 1.1i. At the end of four years, the amount in fund X is equal to the amount in fund Y. Find the amount fund Y exceeds the amount in fund X at the end of two years. Assume that i + 0.
1. An investor puts 100 into fund X at time zero and 100 into fund Y at time zero. Fund X accumulates according to compound interest with an annual effective rate of i. Fund Y accumulates according to simple interest with an annual effective rate 1.1i. At the end of four years, the amount in fund X is equal to the amount in fund Y. Find the amount fund Y exceeds the amount in fund X at the end of two years. Assume that i + 0.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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![1. An investor puts 100 into fund X at time zero and 100 into fund Y at
time zero. Fund X accumulates according to compound interest with an annual
effective rate of i. Fund Y accumulates according to simple interest with an
annual effective rate 1.1i. At the end of four years, the amount in fund X is
equal to the amount in fund Y. Find the amount fund Y exceeds the amount
in fund X at the end of two years. Assume that i + 0.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2a556d5a-9672-413a-9b73-2be35b867ca8%2Fde1a506a-46ae-4182-8263-f21e01f854ce%2Fgzjjlte_processed.png&w=3840&q=75)
Transcribed Image Text:1. An investor puts 100 into fund X at time zero and 100 into fund Y at
time zero. Fund X accumulates according to compound interest with an annual
effective rate of i. Fund Y accumulates according to simple interest with an
annual effective rate 1.1i. At the end of four years, the amount in fund X is
equal to the amount in fund Y. Find the amount fund Y exceeds the amount
in fund X at the end of two years. Assume that i + 0.
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