Unformatted text preview: of 20% for the ±rst two years, and a force of interest of rate δ t = 2 t/ ( t 2 + 8), 2 ≤ t ≤ 4, for the next 2 years. At the end of four years, the amount in Steve’s account is the same as it would have been had he put 100 into an account paying interest at a nominal rate of j per annum compounded quarterly for four years. Calculate j . 5. I borrow 100 at an annual interest rate of j compounded semiannually. Six months later, the annual interest rate (compounded semiannually) suddenly goes up by 4%. One year after the loan, I owe 110.24. Find j . 1...
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 Spring '10
 Dr.K
 Math, Annual Percentage Rate, Interest, Nominal Interest Rate, effective annual rate, Y. Calculate i.

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