Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

33. [/4 Points] HARMATHAP12 9.6.049. PRACTICE ANOTHER If an IRA is a variable-rate investment for 15 years at rate r percent per year, compounded monthly,

image text in transcribed
image text in transcribed
33. [/4 Points] HARMATHAP12 9.6.049. PRACTICE ANOTHER If an IRA is a variable-rate investment for 15 years at rate r percent per year, compounded monthly, then the future value 5 that accumulates from an initial investment of $2000 is 0.01r]18 S = 2000[1 + What is the rate of change of S with respect to r and what does it tell us if the interest rate is as follows? (Round your answers to two decimal places.) (a) 6% :] If we were to increase the rate by 1%, the future value of the investment would increase by about $ (b) 12% :] If we were to increase the rate by 1%, the future value of the investment would increase by about 3; Need Help? _' Show My Work (Optional) 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

WebAssign For Calculus An Applied Approach

Authors: Ron Larson

10th Edition

1337879584, 9781337879583

More Books

Students also viewed these Mathematics questions