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$26,000 is spended for two years. In the first year it gets interest at 8.3% p.a. compounded semi annually. In the same year the rate of interest changes to 7.5% p.a. compounded daily (Suppose 365 days in a year).
(i) Find the accumulated amount at the finish of 2 years. (ii) Find the interest rate p.a. compounded annually, that would give the similar accumulated value at the end of 2 yrs.
20! 18!
First, see that the right hand side of equation (2) is a polynomial and thus continuous. This implies that this can only change sign if this firstly goes by zero. Therefore, if the
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