Find the total amount of interest earned by the investor

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Reference no: EM132771712

An investment fund is launched at time 0 and it earns interest at a force of interest where ={0.01+0.02 ≤2 0.02+0.03| -3| >2, where is a constant.

Problem (a) Calculate the effective interest rate of the investment fund over the period [1,4].

Problem (b) An investor deposits $15000 into this investment fund at time 0. Later, he deposits $4000 at time 2 and withdraw $3000 at time 3.5. Find the total amount of interest earned by the investor over the period [1,3].

Reference no: EM132771712

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