Chapter 1 section 1.13 - Account B earns interest...

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Chapter 1 section 1.13 67. You are given:a. a(t) = 1 + ct + 0.001t3 where c is a constant b. δ10 = 0.14 Lexi invests 1000 at time 0. How much will she have at time 10? 68. Cory can invest 1000 in either of the following accounts: c. Account A earns compound interest at an annual effective rate of i d.
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Unformatted text preview: Account B earns interest equivalent to an annual effective discount rate of 6% for the first five years. Thereafter, Account B accumulates at a = 0.05 + .002t . At the end of 10 years Cory would have the same amount in either account. Calculate i . Answers: 67. 2500 68. 6.54931%...
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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 University-West Lafayette.

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