Homework Help is Here – Start Your Trial Now!
Math
Algebra
1. A bond is worth $100 and grows in value by 4 percent each year. Explain why the value of the bond after t years is given by 100 - 1.04°.

1. A bond is worth $100 and grows in value by 4 percent each year. Explain why the value of the bond after t years is given by 100 - 1.04°.

Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter6: The Trigonometric Functions
Section6.1: Angles
Problem 38E
See similar textbooks
icon
Related questions
Question
1. A bond is worth $100 and grows in value by 4 percent each year. Explain why the value of the bond after t years is given by 100 - 1.04°. 2. A second bond is worth $100 and grows in value by 2 percent each half year. Explain why the value of the bond after t years is given by 100 - (1.02)*. 3. A third bond is worth $100 and grows in value by 4 percent each year, but the interest is applied continuously, at every moment. The value of this bond after t years is given by 100 - e(0.042). Order the bonds from slowest growing to fastest growing. Explain how you know.
Transcribed Image Text:1. A bond is worth $100 and grows in value by 4 percent each year. Explain why the value of the bond after t years is given by 100 - 1.04°. 2. A second bond is worth $100 and grows in value by 2 percent each half year. Explain why the value of the bond after t years is given by 100 - (1.02)*. 3. A third bond is worth $100 and grows in value by 4 percent each year, but the interest is applied continuously, at every moment. The value of this bond after t years is given by 100 - e(0.042). Order the bonds from slowest growing to fastest growing. Explain how you know.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
SEE MORE TEXTBOOKS