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Math Help - Force of Interest

  1. #1
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    Force of Interest

    An investment of $1000 accumulates to $1360.86 at the end of 5 years. If the force of interest is \delta during the first year and 1.5\delta in each subsequent year, find the equivalent effective annual interest rate in the second year.

    Not sure how to proceed, basically all i can think of is
    1360.86=1000\cdot exp\left( \int^5_0 (...)dt \right)

    so cant think of a function for \delta that i should be using to integrate..
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  2. #2
    MHF Contributor
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    i = .04543
    [1000(1 + i)] * (1 + 3i/2)^4 = 1360.86738....
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