The accumulated value A of a monthly savings plan over a 20-year period is a function of
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The accumulated value A of a monthly savings plan over a 20-year period is a function of the monthly contribution R and the interest rate r%, compounded monthly, according to
(a) Find the accumulated value of a plan that contributes $100 per month with interest rate 6%.
(b) Interpret f (250, 7.8) ≈ 143,648.
(c) Interpret ∂A / ∂r (250, 7.8) ≈ 17,770.
(d) Find ∂A / ∂R (250, 7.8) and interpret the result.
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Mathematical Applications for the Management Life and Social Sciences
ISBN: 978-1305108042
11th edition
Authors: Ronald J. Harshbarger, James J. Reynolds
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