force of interest measured in years is δ(t) = 0.02 + 0.01t for t ≥ 0. (a)Compute the accumulated value of £100 invested for 3 years. (b)Compute the constant effective rate per annum that in 3 years produces the same accumulated value of £100 as in (a).

Essentials Of Investments
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Chapter1: Investments: Background And Issues
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The force of interest measured in years is δ(t) = 0.02 + 0.01t for t ≥ 0.

(a)Compute the accumulated value of £100 invested for 3 years.

(b)Compute the constant effective rate per annum that in 3 years produces the same accumulated value of £100 as in (a).

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