Question

accumuldeu vdiu ul ŞSU at time t = 4. (b) For the $5000 invested in time t = 1, find the amount of interest earned during the third year of investment, i.e., between times t = 3 and t = 4. 4. It is known that a(t) if of the form at2 + bt + c. If $100 invested at time 0 accumulates to $300 at time 2 and $700 at time 4 , find the accumulated value at time 10 of $100 invested at time 5. Chapter 1 Section 1.3 The effective rate of interest

#4 please

Answer 1

4.

At t=0:

100=a.0^2+b*0+c or c=100

At t=2:

300=a.2^2+b*2+c

or, 4a+2b=300-100=200

or, 2a+b=100.....A)

At t=4

700=a*4^2+b*4+c

or, 16a+4b=700-100=600

or,4a+b=150....B)

Solving equation A and B, a=25 and b=50

If $100 is invested at t=5 and value to find at t=10, then delta t=10-5=5

Hence value at time 10= 25*5^2+50*5+100=$975