Homework Help is Here – Start Your Trial Now!
Math
Advanced Math
4. Suppose a fund accumulates according to the force of interest 8 (t) = { a 0.05 ct (10-t) 0St≤ 10 t> 10 where c> 0. A deposit in the amount of 5000 is made at the end of two years, and a deposit of 10,000 is made at the end of 10 years. At the end of 20 years, a withdrawal of 100,000 is made to empty out the fund, and then the account is closed.

4. Suppose a fund accumulates according to the force of interest 8 (t) = { a 0.05 ct (10-t) 0St≤ 10 t> 10 where c> 0. A deposit in the amount of 5000 is made at the end of two years, and a deposit of 10,000 is made at the end of 10 years. At the end of 20 years, a withdrawal of 100,000 is made to empty out the fund, and then the account is closed.

Advanced Engineering Mathematics
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
icon
Related questions
Question

Please answer all sabpart with explation

4. Suppose a fund accumulates according to the force of interest ={ ct (10-t) 0≤t≤ 10 0.05 t > 10 8 (t)= where c > 0. A deposit in the amount of 5000 is made at the end of two years, and a deposit of 10,000 is made at the end of 10 years. At the end of 20 years, a withdrawal of 100,000 is made to empty out the fund, and then the account is closed. (a) Find c. (b) Find the equivalent annual effective interest rate over the period (2, 10). That is to say if the annual effective interest rate were constant over this time period, what would it have to be?
Transcribed Image Text:4. Suppose a fund accumulates according to the force of interest ={ ct (10-t) 0≤t≤ 10 0.05 t > 10 8 (t)= where c > 0. A deposit in the amount of 5000 is made at the end of two years, and a deposit of 10,000 is made at the end of 10 years. At the end of 20 years, a withdrawal of 100,000 is made to empty out the fund, and then the account is closed. (a) Find c. (b) Find the equivalent annual effective interest rate over the period (2, 10). That is to say if the annual effective interest rate were constant over this time period, what would it have to be?
Expert Solution
steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
Advanced Engineering Mathematics
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
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…
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Mathematics For Machine Technology
Mathematics For Machine Technology
Advanced Math
ISBN:
9781337798310
Author:
Peterson, John.
Publisher:
Cengage Learning,
Basic Technical Mathematics
Basic Technical Mathematics
Advanced Math
ISBN:
9780134437705
Author:
Washington
Publisher:
PEARSON
Topology
Topology
Advanced Math
ISBN:
9780134689517
Author:
Munkres, James R.
Publisher:
Pearson,
SEE MORE TEXTBOOKS