Answer the questions in Exercise 40 for two investments with respective rates of profitability P1'(t) = 60e

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Answer the questions in Exercise 40 for two investments with respective rates of profitability P1'(t) = 60e0.12t thousand dollars per year and P2'(t) = 160e0.08t thousand dollars per year.


Data from Exercises 40

Suppose that t years from now, one investment plan will be generating profit at the rate of P1'(t) = 100 + t2 hundred dollars per year, while a second investment will be generating profit at the rate of P2'(t) = 220 + 2t hundred dollars per year.

a. For how many years does the rate of profitability of the second investment exceed that of the first?

b. Compute the net excess profit assuming that you invest in the second plan for the time period determined in part (a).

c. Sketch the rate of profitability curves y = P1'(t) and y = P2'(t), and shade the region whose area represents the net excess profit computed in part (b).

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Calculus For Business, Economics And The Social And Life Sciences

ISBN: 9780073532387

11th Brief Edition

Authors: Laurence Hoffmann, Gerald Bradley, David Sobecki, Michael Price

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