3. A fund grows by the force of interest 8 (t) = k max (t, 1 – t) for t≥ 0, and where k > 0. A deposit of 1000 is made at time t = 0.25, and a withdrawal of 500 is made at time t = 0.75. At time t = 1, the fund has a balance of 750. Find the amount of interest earned over the interval (0.25, 0.50). This is the amount of interest earned in the second quarter.
3. A fund grows by the force of interest 8 (t) = k max (t, 1 – t) for t≥ 0, and where k > 0. A deposit of 1000 is made at time t = 0.25, and a withdrawal of 500 is made at time t = 0.75. At time t = 1, the fund has a balance of 750. Find the amount of interest earned over the interval (0.25, 0.50). This is the amount of interest earned in the second quarter.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:3. A fund grows by the force of interest
8 (t)
= k max (t, 1 t)
for t > 0, and where k > 0. A deposit of 1000 is made at time t = 0.25, and
a withdrawal of 500 is made at time t
0.75. At time t
1, the fund has a
balance of 750. Find the amount of interest earned over the interval (0.25,0.50).
This is the amount of interest earned in the second quarter.
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