Suppose that t years from now, one investment plan will be generating profit at the rate of
Question:
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).
Step by Step Answer:
Calculus For Business, Economics And The Social And Life Sciences
ISBN: 9780073532387
11th Brief Edition
Authors: Laurence Hoffmann, Gerald Bradley, David Sobecki, Michael Price