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Random Investment. An investor has $100,000. If the current interest rate is i% (compounded continuously so that the grow per year is exp(i/100)), he invests his money in a i year CD, takes the profits and then reinvests the $100,000. Suppose that the kth investment leads to an interest rate Xk which is uniform on {1, 2, 3, 4, 5}. In the long run how much money does he make per year.

2 Answers

3 votes

Answer:

B

Explanation:

User Joel Duckworth
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1 vote

Answer:

$4017.14

Explanation:

Please see attachment .

Random Investment. An investor has $100,000. If the current interest rate is i% (compounded-example-1
User Alex Coroza
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