Fund F accumulates at a rate of forceinterestt 11t for t 0
Fund F accumulates at a rate of: force_interest_t = 1/(1+t) for t > 0.
 Fund G accumulates a rate of: force_interest_t = 4t/(1+2t^2) for t > 0.
You are given the following pieces of information:
(i) F(t) = Amount in Fund F at time t
(ii) G(t) = Amount in Fund G at time t
(iii) H(t) = F(t) – G(t)
(iv) F(0) = G(0)
(v) T is the time t when H(t) is a maximum.
Calculate T.
Solution
i) F(t) = integral 1/(1+t) dt = ln(1+t) + C
ii) G(t) = integral 4t/(1+2t^2) dt
Let ,(1+2t^2) =u
=> 4tdt = du --------------------Replace in original equation
G(t) = integral 1/u du
= ln(u)
= ln (1+2t^2)) +D
iii) H(t) = F(t) – G(t)
= ln(1+t) + C - ln (1+2t^2) - D
= ln(1+t) - ln (1+2t^2) + C - D
iv)F(0) = G(0)
=> ln(1+0) + C = ln (1+2*0^2) + D
=> C = D
v)For Maximum H(t) ,
H(t) =ln(1+t) - ln (1+2t^2) + C - D
H \'(t) =0
H\'(t) = 1/(1+t) - 4t/(1+2t^2) =0
=> 1/(1+t) = 4t/(1+2t^2)
=> 1+2t^2 = 4t + 4t^2
=> 2t^2+4t-1 =0
=> t = (-4+sqrt(16-4*2*(-1)) / (2*2) = 0.2247
Therefore, T = 0.2247 Answer

