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Your grandmother has oppend a savings account in your name when you were 8-years-old. She was investing $250 at the end of each year
Your grandmother has oppend a savings account in your name when you were 8-years-old. She was investing $250 at the end of each year for 10 years at the locked annual interest rate of r. The amount of 250[(1+r)10-1] money accumulated in this account after 10 years is f(r) = Your dream car cost $3500. Do you have this sum accumulated in your account after 10 years of savings? (a) You do not know exactly what the locked anneal interest rate r is, but from the information online you know that r was between 1% and 10% or in the interval (0.01,0.10). Using the Intermediate Value Theorem, determine whether there is an interest rate r would allow you to buy that car using accumulated fonds. A. Yes, because the function f(r) is continuous on (0.01,0.10) and 3500 is between f(0.01) and f(0.10). B. Yes, because f(0.01)
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