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An investment of 1 will double in 27.72 years at a force of interest, δ. An investment of 1 will increase to 7.04 in n years at a nominal rate of interest numerically equal to δ and convertible once every two years. Calculate n.

Respuesta :

Answer:

80

Explanation:

According to the given situation, the computation of n is shown below:-

EXP[27.72δ]=2

δ =0.025

m = 1 ÷ 2

(1 + 0.025 ÷ (1 ÷ 2))^n ÷ 2 = 7.04

n ÷ 2 × ln(1.05)=ln(7.04)

n ÷ 2=40

n = 80

Therefore for computing the n we simply applied the above formula i.e. by considering all the information given in the question

Hence,the n is 80

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