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(Solved): A Customer Is Offered An Investment Where Interest Is Calculated According To The Following Force Of...


A customer is offered an investment where interest is calculated according to the following force of interest: 8(t) = 0.07 0.

A customer is offered an investment where interest is calculated according to the following force of interest: 8(t) = 0.07 0.04t + 0.04 if Osts 5 10.07 if 5<t The customer invests 1000 at time t=0. (A) What nominal rate of interest, compounded quarterly, is earned over the first seven-year period? Round your answer to 3 decimal places % (B) What is the accumulated value at t = 9?


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