3. Assume a force of interest of 8(t) = 0.10+ 0.24t² a. Calculate the values of the nominal rates of interest i(2), (12) and (365) at the start of the year that would produce the same accumulated values at time t = 1, t= and t = 35 as would have been produced if the force of interest 8(t) had acted on the fund for those respective time periods. b. Calculate the values of the nominal rates of interest (²), (12) and (365) at the start of the second year that would produce the same accumulated values at time t = 1+1, t=1+1 and 1=1+35 as would have been produced if the force of interest 8(t) had acted on the fund for those respective time periods. c. What do you think the limit as n→∞oof (*) would be in those two situations?
3. Assume a force of interest of 8(t) = 0.10+ 0.24t² a. Calculate the values of the nominal rates of interest i(2), (12) and (365) at the start of the year that would produce the same accumulated values at time t = 1, t= and t = 35 as would have been produced if the force of interest 8(t) had acted on the fund for those respective time periods. b. Calculate the values of the nominal rates of interest (²), (12) and (365) at the start of the second year that would produce the same accumulated values at time t = 1+1, t=1+1 and 1=1+35 as would have been produced if the force of interest 8(t) had acted on the fund for those respective time periods. c. What do you think the limit as n→∞oof (*) would be in those two situations?
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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a b and c plz
Transcribed Image Text:3. Assume a force of interest of 8(t) = 0.10+0.24t²
a. Calculate the values of the nominal rates of interest i(2), (¹2) and (365) at
the start of the year that would produce the same accumulated values at
time t, t= and t = 35 as would have been produced if the force of
interest 8(t) had acted on the fund for those respective time periods.
b. Calculate the values of the nominal rates of interest i(2), (¹2) and (365) at
the start of the second year that would produce the same accumulated
values at time t = 1+1, t=1+1 and t=1+35 as would have been
produced if the force of interest 8(t) had acted on the fund for those
respective time periods.
c. What do you think the limit as n→ of in) would be in those two
situations?
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