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1. Suppose money accumulates using the accumulation function a(t) = 1 + 0.044t2 where t is in years.

Calculate the effective rate of interest in the 6th year. Write your answer as a decimal to 4 significant digits.

2. Suppose that money accumulates according to the accumulation function a(t) = 1 + 0.08t + 0.01t2

Find the force of interest at time 3.. Write your answer as a decimal to 4 significant digits.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92669426

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