Francis owes a bank the amount D₁ which he agreed to pay in 2 years and another amount D₂ due in 5 years. Suppose money is worth 10% compounded semi- annually. Which of the following is the value of all his debts by the end of the fourth year? O D₁ (1.1)2 + D₂ (1.1)-¹ O D₁ (1.05)4 + D2 (1.05)-2 O (D₁ + D₂) (1.1)¹ O D₁ (1.05) + D₂ (1.05)²

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
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Chapter2: Second-order Linear Odes
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Francis owes a bank the amount D₁ which he agreed to pay in 2 years and another amount D₂ due in 5 years. Suppose money is worth 10% compounded semi-
annually. Which of the following is the value of all his debts by the end of the fourth year?
O D₁ (1.1)2 + D₂ (1.1)-¹
O D₁ (1.05)4 + D₂ (1.05)-2
O (D₁ + D₂) (1.1)
OD₁(1.05)
+ D₂ (1.05)²
Transcribed Image Text:Francis owes a bank the amount D₁ which he agreed to pay in 2 years and another amount D₂ due in 5 years. Suppose money is worth 10% compounded semi- annually. Which of the following is the value of all his debts by the end of the fourth year? O D₁ (1.1)2 + D₂ (1.1)-¹ O D₁ (1.05)4 + D₂ (1.05)-2 O (D₁ + D₂) (1.1) OD₁(1.05) + D₂ (1.05)²
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