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Unformatted text preview: of 20% for the rst two years, and a force of interest of rate t = 2 t/ ( t 2 + 8), 2 t 4, for the next 2 years. At the end of four years, the amount in Steves 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