Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. pls calculate manually using formula question 1 a

pls calculate manually using formula Question 1 An investor puts $100 into Fund X...

60.1K

Verified Solution

Question

Finance

image

pls calculate manually using formula

Question 1 An investor puts $100 into Fund X and $100 into Fund Y at the beginning. Fund Y earns compound interest at the annual rate of j > 0, and Fund X earns simple interest at the annual rate of 1.25j. At the end of two years, the amount of interest in Fund Y is equal to the amount of interest in Fund X. Calculate, (a) j, correct to five decimal places. [5 marks] (b) The amount of money in both funds at the end of five years. [3 marks] (c) The difference in amount of interest earned by both fund at the end of ten years. [3 marks] Question 1 An investor puts $100 into Fund X and $100 into Fund Y at the beginning. Fund Y earns compound interest at the annual rate of j > 0, and Fund X earns simple interest at the annual rate of 1.25j. At the end of two years, the amount of interest in Fund Y is equal to the amount of interest in Fund X. Calculate, (a) j, correct to five decimal places. [5 marks] (b) The amount of money in both funds at the end of five years. [3 marks] (c) The difference in amount of interest earned by both fund at the end of ten years. [3 marks]

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students