If an IRA is a variable-rate investment for 15 years at rate r percent per year, compounded monthly, then the future value S that accumulates from an initial investment of $2000 is = 2000 [1 + 0.01-180 12 S= What is the rate of change of S with respect to r and what does it tell us if the interest rate is as follows? (Round your answers to two decimal places.) (a) 6% (b) X If we were to increase the rate by 1%, the future value of the investment would increase by about $ 12% X If we were to increase the rate by 1%, the future value of the investment would increase by about $ X x

If an IRA is a variable-rate investment for 15 years at rate r percent per year, compounded monthly, then the future value S that accumulates from an initial investment of $2000 is = 2000 [1 + 0.01-180 12 S= What is the rate of change of S with respect to r and what does it tell us if the interest rate is as follows? (Round your answers to two decimal places.) (a) 6% (b) X If we were to increase the rate by 1%, the future value of the investment would increase by about $ 12% X If we were to increase the rate by 1%, the future value of the investment would increase by about $ X x

College Algebra

1st Edition

ISBN:9781938168383

Author:Jay Abramson

Publisher:Jay Abramson

Chapter6: Exponential And Logarithmic Functions

Section6.1: Exponential Functions

Problem 68SE: An investment account with an annual interest rateof 7 was opened with an initial deposit of 4,000...

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