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An account credits interest at an effective annual rate of 2% for the first 10 years and according to a force of interest 8(1) = thereafter. • a) Deposits are made continuously into the account at a rate A,(() = 1. Find the accumulated value after 15 years. • b) Deposits in the account stop after fifteen years. The accumulated amount (found above) is used to fund a continuous withdrawal at a rate 12(t) = 21. Can this withdrawal scheme be carried forever? Justify your answer.

An account credits interest at an effective annual rate of 2% for the first 10 years and according to a force of interest 8(1) = thereafter. • a) Deposits are made continuously into the account at a rate A,(() = 1. Find the accumulated value after 15 years. • b) Deposits in the account stop after fifteen years. The accumulated amount (found above) is used to fund a continuous withdrawal at a rate 12(t) = 21. Can this withdrawal scheme be carried forever? Justify your answer.

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
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An account credits interest at an effective annual rate of 2% for the first 10 years and according to a force of interest 8(t) = 4 21 thereafter, • a) Deposits are made continuously into the account at a rate A, (1) = 1. Find the accumulated value after 15 years. • b) Deposits in the account stop after fifteen years. The accumulated amount (found above) is used to fund a continuous withdrawal at a rate 12(t) = 21. Can this withdrawal scheme be carried forever? Justify your answer. + Drag and drop an image or PDF file or click to browse...
Transcribed Image Text:An account credits interest at an effective annual rate of 2% for the first 10 years and according to a force of interest 8(t) = 4 21 thereafter, • a) Deposits are made continuously into the account at a rate A, (1) = 1. Find the accumulated value after 15 years. • b) Deposits in the account stop after fifteen years. The accumulated amount (found above) is used to fund a continuous withdrawal at a rate 12(t) = 21. Can this withdrawal scheme be carried forever? Justify your answer. + Drag and drop an image or PDF file or click to browse...
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