Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You plan to invest in an account which pays 4% compounded continuously. If the investment period is for 5 years, then A(P) = pe0.04 .

image text in transcribed

image text in transcribed
You plan to invest in an account which pays 4% compounded continuously. If the investment period is for 5 years, then A(P) = pe0.04 . 5 = p 0.2 gives the total balance of P dollars. Find a formula for A' (P) . Find and interpret A'(8000). c. Compare the approximation to the actual change. a. A'(P) = (Type an exact answer in terms of e.) b. A'(8000) = (Round to the nearest cent as needed.) Interpret A' (8000) = 1.22 O A. The future value of a 6 year investment of $8001 will be $ more than the future value of a 6 year investment of $8000. O B. The future value of a 5 year investment of $8001 will be $ more than the future value of a 5 year investment of $8000. O C. The future value of a 6 year investment of $8000 will be $ more than the future value of a 6 year investment of $8000. O D. The future value of 5 year investment of $8000 at 5% will be $ more than the future value of a 5 year investment of $4000 at 4%. C. A(8001) - A(8000) = dollars per year. (Round to the nearest cent as needed.)

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

Precalculus Functions And Graphs

Authors: Mark Dugopolski

4th Edition

0321849124, 9780321849120

More Books

Students also viewed these Mathematics questions