1. (10 points) Am investor makes deposits in the following two accounts: Account 1: Two deposits:...

 

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1. (10 points) Am investor makes deposits in the following two accounts: Account 1: Two deposits: 500 at time 2 years from now and 1000 at time 5 years from now, assuming a force of interest d , t≥ 0, and t is measured in years. 0.4 1+0.2t = Account 2: Two deposits: 90 at time n years from now, and 180 at time 5n years from now, where n is a positive real number. It is assumed an effective annual discount rate of 2%. If the accumulated value at time 16 years from now in account 1 is equal to the accumulated value at time 9n years from now in account 2, calculate n. 1. (10 points) Am investor makes deposits in the following two accounts: Account 1: Two deposits: 500 at time 2 years from now and 1000 at time 5 years from now, assuming a force of interest d , t≥ 0, and t is measured in years. 0.4 1+0.2t = Account 2: Two deposits: 90 at time n years from now, and 180 at time 5n years from now, where n is a positive real number. It is assumed an effective annual discount rate of 2%. If the accumulated value at time 16 years from now in account 1 is equal to the accumulated value at time 9n years from now in account 2, calculate n.

Answer rating: 100% (QA)

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