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b. ) Finding an interest rate: Suppose you invest J$ 150,000 in a special 5 year savings account with a fixed annual rate r, with monthly compounding. The amount of money A in the account after 5years (60 months) is: A(r ) = 150,000( 1+ r12) 60 . Your goal is to have $200,000 in the account after 5 years. i. Use the Intermediate value theorem to show there is a value of r in ( 0,0.07) that is an interest rate between 0% and 7% for which A(r) = 200,000 ii. Use a graphing utility to illustrate your explanation in part (i) and then estimate the interest rate required to reach your goal

b. ) Finding an interest rate: Suppose you invest J$ 150,000 in a special 5 year savings account with a fixed annual rate r, with monthly compounding. The amount of money A in the account after 5years (60 months) is: A(r ) = 150,000( 1+ r12) 60 . Your goal is to have $200,000 in the account after 5 years. i. Use the Intermediate value theorem to show there is a value of r in ( 0,0.07) that is an interest rate between 0% and 7% for which A(r) = 200,000 ii. Use a graphing utility to illustrate your explanation in part (i) and then estimate the interest rate required to reach your goal

Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter5: Inverse, Exponential, And Logarithmic Functions
Section5.2: Exponential Functions
Problem 72E
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b. ) Finding an interest rate: Suppose you invest J$ 150,000 in a special 5 year savings account with a fixed annual rate r, with monthly compounding. The amount of money A in the account after 5years (60 months) is: A(r) = 150,000( 1 + r12) 60 . Your goal is to have $200,000 in the account %3D after 5 years. i. Use the Intermediate value theorem to show there is a value of r in ( 0,0.07) that is an interest rate between 0% and 7% for which A(r) = 200,000 ii. Use a graphing utility to illustrate your explanation in part (i) and then estimate the interest rate required to reach your goal %3D
Transcribed Image Text:b. ) Finding an interest rate: Suppose you invest J$ 150,000 in a special 5 year savings account with a fixed annual rate r, with monthly compounding. The amount of money A in the account after 5years (60 months) is: A(r) = 150,000( 1 + r12) 60 . Your goal is to have $200,000 in the account %3D after 5 years. i. Use the Intermediate value theorem to show there is a value of r in ( 0,0.07) that is an interest rate between 0% and 7% for which A(r) = 200,000 ii. Use a graphing utility to illustrate your explanation in part (i) and then estimate the interest rate required to reach your goal %3D
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