How Does Actuarial Math Calculate Future Investment Value?

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The discussion centers on the calculation of future investment value using actuarial mathematics, specifically the formula A(t) = at² + b. An investment of $100 at time 0 accumulates to $172 at time 3, leading to the determination of constants a and b. The value of a is established as 0.08, resulting in the formula A(t) = 0.08t² + 1. The accumulated value at time 10 for an investment made at time 5 is calculated to be $600, although there is confusion regarding the correct interpretation of the variables used in the equations.

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It is known that a(t) is of the form at² + b. If $100 is invested at time 0 accumulates to $172 at time 3, find the accumulated value at time 10 of $100 invested at time 5.

I've found b by doing this:

a(t) = at² + b
A(t) = A(0)a(t)
at time t = 0:
A(0) = A(0)(0 + b)
b = 1

Now is it correct to say the following:
172 = 100(a*3² + 1)
thus a = 0.08
and then the accumulated value at time 10 of $100 invested at time 5 is:
A(10) = 100(0.08(10²)+1) - 100(0.08(5²)+1)
A(10) = 900 - 300 = $600?
 
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Your question makes no sense. You say that a(t)= at2+ b. How can you use "a" inside an equation for "a"? Did you mean A(t)? But then you say A(t)= A(0)a(t).

If you meant A(t)= at2+ b with a and b constants, then
A(0)= a(0)+ b= b= 100 so b= 100. Then A(3)= a(32)+ 100= 100+ 9a= 172 so 9a= 72 and a= 8.
That is, A(t)= 8t2+ 100.
find the accumulated value at time 10 of $100 invested at time 5.
I'm not sure what is meant here. Are we to recalculate b, so that A(5)= 100, assuming the same a, and then calculate A(10)?
 
Question: A clock's minute hand has length 4 and its hour hand has length 3. What is the distance between the tips at the moment when it is increasing most rapidly?(Putnam Exam Question) Answer: Making assumption that both the hands moves at constant angular velocities, the answer is ## \sqrt{7} .## But don't you think this assumption is somewhat doubtful and wrong?

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