A scammer offers you a "deal" by which you can invest your money with them and earn returns. The scammer "explains": "you actually earn the same return that the S&P500 produces on a given day and a premium which is directly proportional to the value of your investment that day". After rejecting the scammer's proposal, you were left curious to model the ludicrous scheme of the scammer. At home, you work out the numbers in your computer: you call I (t) the value of an investment that follows the scammer's, with t in days; and you denote by S(t) the return rate of the S&P500 (e.g. if the S&P went up 3% on a day to, then S(to) = 0.03). Which of the following differential equations models the scammer's scheme? O di O dt. = (S(t) + K)I(t) = KS(t)I(t) S(t) + KI(t) = (1 + S(t) + K)I(t)

A scammer offers you a "deal" by which you can invest your money with them and earn returns. The scammer "explains": "you actually earn the same return that the S&P500 produces on a given day and a premium which is directly proportional to the value of your investment that day". After rejecting the scammer's proposal, you were left curious to model the ludicrous scheme of the scammer. At home, you work out the numbers in your computer: you call I (t) the value of an investment that follows the scammer's, with t in days; and you denote by S(t) the return rate of the S&P500 (e.g. if the S&P went up 3% on a day to, then S(to) = 0.03). Which of the following differential equations models the scammer's scheme? O di O dt. = (S(t) + K)I(t) = KS(t)I(t) S(t) + KI(t) = (1 + S(t) + K)I(t)

Intermediate Algebra

19th Edition

ISBN:9780998625720

Author:Lynn Marecek

Publisher:Lynn Marecek

Chapter12: Sequences, Series And Binomial Theorem

Section12.3: Geometric Sequences And Series

Problem 12.58TI: What is the total effect on the economy of a government tax rebate of $500 to each household in...

See similar textbooks

Related questions

Q: Please do b, c and d! Please show steps and explain!

A: From given graph, v1 is adjacent to vertices v2, v3, v4 v2 is adjacent to vertices v1, v2, v4 v3…

Q: Please show steps and mark answers

Q: Hello thank you for the response to the first question, could you also answer question 2? Thank…

A: 2. The given integral is ∫14x2+4x+10dx We have to find the solution of the integral.

Q: not correct answer. I need solution for each "select"

Q: Please show EVERY STEP and JUSTIFY your answer.

A: Step 1: Step 2: Step 3: Step 4:

Q: Let X be the discrete random variable with the probability function f (x) = kx³ + 0.15 %3D for x =…

Q: can you list the solution as 1 ,2 ,3 ,4 so i can understand and write the answers

A: can you list the solution as 1 ,2 ,3 ,4 so i can understand and write the answers

Q: Please give answers in step by step

A: Step 1: Analyze the problem. Step 2: Check if there's lacking. Step 3: Give a suggestion

Q: I have a question regarding the question B. Can you please help me? Thanks

A: To use normal approximation, the following conditions should be satisfied. np>5 and n(1-p)>5

Q: 3. Set up an integral (do not evaluate) that represents the area of the region that lies inside the…

A: We have to set up the integral to find the area.

Q: A random sample of n measurements was selected from a population with unknown mean μ and standard…

A: As per the Bartleby guildlines we have to solve first three subparts and rest can be reposted...…

Q: Joan can type 50 form letters in three hours. When Jill helps, they can do the job in one hour. How…

Q: I want all solved please thanks for first 3

A: Since you have posted a question with multiple subparts, we will solve first three subparts for you.…

Q: don't the answer written in this format. Could you please draw and send a picture

A: Solution

Q: Please explain steps and answeres

A: Given system of differential equation is dxdt=2dydt=y2 This system can be solved using the…

Question

Please explain the answer alongside the steps. Thank you!

A scammer offers you a "deal" by which you can invest your money with them and earn returns. The scammer
"explains": "you actually earn the same return that the S&P500 produces on a given day and a premium which is
directly proportional to the value of your investment that day".
After rejecting the scammer's proposal, you were left curious to model the ludicrous scheme of the scammer. At
home, you work out the numbers in your computer: you call I(t) the value of an investment that follows the
scammer's, with t in days; and you denote by S(t) the return rate of the S&P500 (e.g. if the S&P went up 3% on a
day to, then S(to) = 0.03). Which of the following differential equations models the scammer's scheme?
dI
dt
dt
dt
dI
dt
=
=
(S(t) + K)I(t)
KS(t)I(t)
S(t) + KI(t)
(1 + S(t) + K)I(t)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

What is the total effect on the economy of a government tax rebate of $500 to each household in order to stimulate the economy if each household will spend of the rebate in goods and services?
What interest rate would you need to get to double an investment of 200 in eight years?
Jerome invests $18,000 at age 17. He hopes the investments will be worth $30,000 when he turns 26. If the interest compounds continuously, approximately what rate of growth will he need to achieve his goal? Is that a reasonable expectation?
A certain company grants a six-month investment product that offers to pay its clients 8% the first month, 12% the second month, 11% the third month, 8% the fourth month, 14% the fifth month and 15% the sixth month. What would be the value of the average rate that the customer will receive? Write your answer to 2 decimal places.
A manufacturer of ovens sells them for $1,510.00 each. The variable costs are $1,030.00 per unit. The manufacturer's factory has annual fixed costs of $2,130,000.00. Given the expected sales volume of 3,600 units for this year, what will be this year's net income? Round to two decimal places
A vehicle accessory shop is considering buying a new style of wheels for $197.00 and selling them at $212.00 for each wheel. Fixed costs related to this new style of wheel amount to $240.00. It is estimated that 33 wheels per month could be sold. (a) How many wheels must they sell to break even?(b) How much profit will the accessory shop make each month?
From 1929 through the early 1930s, the prices of consumer goods actually decreased. Economists call this phenomenon deflation. The rate of deflation during this period was about 7% per year, meaning that prices decreased by 7% per year. To get a sense of what this rate would mean in the long run, let's suppose that this rate of deflation persisted over a period of 20 years. What would be the cost after 20 years of an item that costs $500 initially? (Round your answer to the nearest cent.)
An investor anticipates that land values for a site will be worth $100,000 in five years. If real estate taxes are expected to be $2,500 each year, how much can the investor pay today for the site and still earn a 15 percent return on his investment?
You are a rising star in the music industry and you have just received word that you will be rewarded with a $500,000 bonus this year. As your chauffeur drives you home in the company's limousine, you call your accountant, who suggests investing your bonus in a high-yield account offering 12.6 % continuous interest. A friend you knew in college, however, wants you to invest your bonus in his restaurant business, and has promised 12.6 % interest, compounded quarterly. You want to compare both accounts before making a decision, so you crunch the numbers to find out: HOW LONG WILL IT TAKE TO EARN AN EXTRA $100,000? WHEN WILL THE ACCOUNT HAVE $750,000? HOW LONG WILL IT TAKE TO DOUBLE MY MONEY? HOW LONG WILL IT TAKE TO TRIPLE MY INVESTMENT?
Suppose that you have $15,000 in a rather risky investment recommended by your financial advisor. During the first year, your investment decreases by 60% of its original value. During the second year, your investment at the end of year one increases by 70%. Your advisor tells you that there must have been a 10% overall increase of your original $15,000 investment. Is your financial advisor using percentages properly? If not, what is your actual percent gain or loss of your original $15,000 investment? ..... Select the correct choice below and fill in the answer boxes to complete your choice. (Type a whole number.) O A. Yes, there is an actual percent gain of % O B. No, there is an actual percent loss of % O C. No, there is an actual percent gain of O D. Yes, there is an actual percent los of
Suppose that you have $9,000 in a rather risky investment recommended by your financial advisor. During the first year, your investment decreases by 40% of its original value. During the second year, your investment at the end of year one increases by 50%. Your advisor tells you that there must have been a 10% overall increase of your original $9,000 investment. Is your financial advisor using percentages properly? If not, what is your actual percent gain or loss of your original $9,000 investment? Select the correct choice below and fill in the answer boxes to complete your choice. (Type a whole number.) O A. No, there is an actual percent gain of % O B. Yes, there is an actual percent loss of % O C. Yes, there is an actual percent gain of % O D. No, there is an actual percent loss of %
The current price of a certain stock is £32, and a 3-month European call option with a strike of £33 costs £3.20. You believe that this stock will rise sharply in the coming months, so you would like to invest £6,400 in either the stock or options. What is the potential profit and loss from each alternative investment if the share price rises to £40 at expiration? What if the share price goes down to £25 at expiration? Draw a graph to represent your profit and loss profile of the option investment. Show in your graph the strike price, the breakeven point, and the potential maximum loss.