The force of interest is given by 0.24 + 0.015t 0

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
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The force of interest is given by
(
0.24 + 0.015t 0<t<5
0.37 – 0.021t 5<t< 15,
where t is measured in years.
a) Find the present value of $34000 payable at time t = 7 relative to time t = 3.
Answer = $
b) Find the 4-year average annual rate of return for the period from t = 3 to t = 7.
Answer =|
%.
Transcribed Image Text:The force of interest is given by ( 0.24 + 0.015t 0<t<5 0.37 – 0.021t 5<t< 15, where t is measured in years. a) Find the present value of $34000 payable at time t = 7 relative to time t = 3. Answer = $ b) Find the 4-year average annual rate of return for the period from t = 3 to t = 7. Answer =| %.
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