The answer is $12140.26 PLEASE CHECK YOUR ANSWER BEFORE YOU ANSWER THIS PROBLEM. 0, and three ways to invest Mr. Valdez has $10,000 to invest at time t it. Investment account I is governed by compound interest with an annual effective discount rate of 3%. Investment account II has force of interest equal 04 Investment account III is governed by the accumulation function to 14052 a(t) = (1- 00512) Mr. Valdez can transfer his money between the three investments at any time. What is the maximum amount he can accumulate at 5? (HINT: At all times, Mr. Valdez wishes to have his money in the time r = account that has the greatest force of interest at that moment. Therefore, be- gin by determining the force of interest function for each of the investment accounts. Next decide for which time interval Mr. Valdez should have his money in each of the accounts. Assume that he accordingly moves his money to maximize his return. You will then necd the accumulation functions for the accounts in order to determine Mr. Valdez's balance at t= 5. Remember to use Important Fact (1.7.4).) The answer is $12140 26 PLEASE CHECK YOUR ANSWER BEFORE YOU ANSWER THIS PROBLEM This is not a problem that u calculate the balance of those three investments when t- 5 problems the answer is like 2 years of investment No.21-year investment No.1 and 2 years of investment No.3. Show transcribed image text The answer is $12140.26 PLEASE CHECK YOUR ANSWER BEFORE YOU ANSWER THIS PROBLEM. 0, and three ways to invest Mr. Valdez has $10,000 to invest at time t it. Investment account I is governed by compound interest with an annual effective discount rate of 3%. Investment account II has force of interest equal 04 Investment account III is governed by the accumulation function to 14052 a(t) = (1- 00512) Mr. Valdez can transfer his money between the three investments at any time. What is the maximum amount he can accumulate at 5? (HINT: At all times, Mr. Valdez wishes to have his money in the time r = account that has the greatest force of interest at that moment. Therefore, be- gin by determining the force of interest function for each of the investment accounts. Next decide for which time interval Mr. Valdez should have his money in each of the accounts. Assume that he accordingly moves his money to maximize his return. You will then necd the accumulation functions for the accounts in order to determine Mr. Valdez's balance at t= 5. Remember to use Important Fact (1.7.4).) The answer is $12140 26 PLEASE CHECK YOUR ANSWER BEFORE YOU ANSWER THIS PROBLEM This is not a problem that u calculate the balance of those three investments when t- 5 problems the answer is like 2 years of investment No.21-year investment No.1 and 2 years of investment No.3. Show transcribed image text