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Business, 28.10.2020 16:50 Amandachavez94

An investment fund accrues interest with force of interest δt = K 1 + (1 − t)K for 0 ≤ t ≤ 1. At time zero, there is 100,000 in the fund. At time one there is 110,000 in the fund. The only two transactions during the year are a deposit of 15,000 at time 0.25 and a withdrawal of 20,000 at time 0.75. Calculate K

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