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Unformatted text preview: a(t) = 1 + 0.001t3 . Investment 2 has an accumulation function of a(t) = 1 + 0.01t2 . a. Which investment should Poppy use if Poppy will be investing for 5 years. Explain why. b. Which investment should Poppy use if Poppy will be investing for 15 years. Explain why. c. If Poppy invests 100 into both investments, at what time will the accumulated value of both investments be equal. 9. Book Problem 1.3, Number 5 10. Book Problem 1.3, Number 6 Answers 1. 751,500 2. 6558 3. 6.8619 4. 64.0025 5. a. 1000 b. 200 c. 1.2 d. 0.20 6.a. 168 b. 0.07348 c. 0.15068 7. =1;=0.10;=0.05 8. a. Investment 2 is better for 5 years as a(5) for Investment 2 is 1.25 while it is only 1.125 for Investment 1 b. Investment 1 is better for 15 years as a(15) for Investment 1 is 4.375 while it is only 3.25 for Investment 2 c. 10 years 9. n(n 1)/2 10. 2^(n+1) 2...
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This note was uploaded on 02/04/2012 for the course MA 373 taught by Professor Staff during the Spring '08 term at Purdue UniversityWest Lafayette.
 Spring '08
 Staff
 Math

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