What average continuous return must be earned

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1. An investor makes a deposit today and earns an average continuous return (force of interest) of 5.5% over the next 6 years. What average continuous return must be earned over the subsequent 4 years in order to double the investment at the end of ten years?

2. In Fund X money accumulates at a force of interest δt=0.04t+0.3 In fund Y money accumulates at an annual effective interest rate i. An amount of 1 is invested in each fund and 10 years later the values of Fund X and Fund Y are equal. Calculate the value of Fund Y at the end of 2.5 years.

Reference no: EM131973088

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