1. An investor puts 100 into fund X at time zero and 100 into fund Y attime zero. Fund X accumulates according to compound interest with an annualeffective rate of i. Fund Y accumulates according to simple interest with anannual effective rate 1.1i. At the end of four years, the amount in fund X isequal to the amount in fund Y. Find the amount fund Y exceeds the amountin fund X at the end of two years. Assume that i + 0.

Given: Let's consider the given, P=100 n=1.1i Determine the amount fund Y exceeds the amount in fund…

Answered: 1. An investor puts 100 into fund X at…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

See similar textbooks

Similar questions

Ex 1. Suppose you invest $404 in a pqr stock at the beginning of the trading day yesterday. The stock decreased 3.56% during the trading day yesterday and 2,43% today. How much money do you have in the pqr stock now? Use any Excel method and put your answer in cell D11. Ex 2. Suppose you deposit $154 in a CD account with the 3.84% APR interest rate. How much money will you have in that account after 16 years? Use any Excel method. Put your answer in cell D13.
A savings account with an interest rate r, which is compounded n times per year, and begins with P as the principal (initial amount), has the discrete nt compounding formula A (t) = P(1+)". This is n because we multiply the amount by itself plus a small amount, determined by the interest rate, and the account grows each time the compounding occurs. For continuous compounding, we use the formula A (t) = Pert , and if we have seen this formula before, we may not have gotten a satisfactory answer as to why we use it, other than some vague notion of "compounding infinity times per year". In this exercise, we'll use Bernoulli's Rule to find the connection. It might be helpful to review the "Indeterminate Powers" section of the video before beginning. Why can we write nt lim,→00 P(1+ )"t P limn¬∞ (1+)™ ? n
A client’s orders are growing consistently at x% per year. A) If three years from now orders are 50% higher than today, what is the annual growth rate (x)? B) Write an expression (in terms of x) for how many years it will take until orders are double what they are currently
If you deposit A which yields returns of B at the end of each of the first n years then establish the mathe-matical equation to calculate the rate of return, r, from this investment.A = R10000, B=R2000, n=7

Recommended textbooks for you

Advanced Engineering Mathematics

Advanced Math

ISBN:

9780470458365

Author:

Erwin Kreyszig

Publisher:

Wiley, John & Sons, Incorporated

Numerical Methods for Engineers

Advanced Math

ISBN:

9780073397924

Author:

Steven C. Chapra Dr., Raymond P. Canale

Publisher:

McGraw-Hill Education

Introductory Mathematics for Engineering Applicat…

Advanced Math

ISBN:

9781118141809

Author:

Nathan Klingbeil

Publisher:

WILEY

Advanced Engineering Mathematics

Advanced Math

ISBN:

9780470458365

Author:

Erwin Kreyszig

Publisher:

Wiley, John & Sons, Incorporated

Numerical Methods for Engineers

Advanced Math

ISBN:

9780073397924

Author:

Steven C. Chapra Dr., Raymond P. Canale

Publisher:

McGraw-Hill Education

Introductory Mathematics for Engineering Applicat…

Advanced Math

ISBN:

9781118141809

Author:

Nathan Klingbeil

Publisher:

WILEY

Mathematics For Machine Technology

Advanced Math

ISBN:

9781337798310

Author:

Peterson, John.

Publisher:

Cengage Learning,

Basic Technical Mathematics

Advanced Math

ISBN:

9780134437705

Author:

Washington

Publisher:

PEARSON

Topology

Advanced Math

ISBN:

9780134689517

Author:

Munkres, James R.

Publisher:

Pearson,

SEE MORE TEXTBOOKS