Suppose that I years from now, one investment plan will be generating profit at the rate of P1'(t)= 90e0.1t thousand dollars per year, while a second investment will be generating profit at the rate of P2'(t)= 140e0.07t thousand dollars per year. (a) For how many years does the rate of profitability of the second investment exceed that of the first? (b) Compute the net excess profit assuming that you invest in the second plan for the time period determined in part (a). (c) Sketch the rate of profitability curves y = P1'(t) and y = P2'(t) and shade the region whose area represents the net excess profit computed in part (b).
Suppose that I years from now, one investment plan will be generating profit at the rate of P1'(t)= 90e0.1t thousand dollars per year, while a second investment will be generating profit at the rate of P2'(t)= 140e0.07t thousand dollars per year. (a) For how many years does the rate of profitability of the second investment exceed that of the first? (b) Compute the net excess profit assuming that you invest in the second plan for the time period determined in part (a). (c) Sketch the rate of profitability curves y = P1'(t) and y = P2'(t) and shade the region whose area represents the net excess profit computed in part (b).
Chapter6: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 8RE: Suppose an investment account is opened with aninitial deposit of 10,500 earning 6.25...
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Suppose that I years from now, one investment plan will be generating profit at the rate of P1'(t)= 90e0.1t thousand dollars per year, while a second investment will be generating profit at the rate of P2'(t)= 140e0.07t thousand dollars per year.
(a) For how many years does the rate of profitability of the second investment exceed that of the first?
(b) Compute the net excess profit assuming that you invest in the second plan for the time period determined in part (a).
(c) Sketch the rate of profitability curves y = P1'(t) and y = P2'(t) and shade the region whose area represents the net excess profit computed in part (b).
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