Smith makes deposits of 100$ at time 0, and X $ at time 3. the fund grows at a force of interest f= (t^2)/100, t>0. The amount of interest earned from time 3 to time 6 is X. Calculate X.

Any help would be really appreciated.

Printable View

- Sep 29th 2008, 09:19 AMmathlovetFinancial math- force of interest

**Smith makes deposits of 100$ at time 0, and X $ at time 3. the fund grows at a force of interest f= (t^2)/100, t>0. The amount of interest earned from time 3 to time 6 is X. Calculate X.**

Any help would be really appreciated. - Sep 29th 2008, 09:58 AMTKHunny
Have you considered the basic formulation? You can do it in stages if it is easier to keep track.

Solve for X.

Note: You may wish to eliminate some rounding. There really is no need to use the three decimal places for intermediate results. I get an error of about 0.3¢ due to the unnecessary rounding. The integrals are exact to two decimal places, so that creates no additional rounding problem. - Sep 29th 2008, 01:07 PMTKHunny
Hmpf! Let's see you do the next one. Only one for free.