Suppose that V(t) = (21)1.07' + 5 sin(t) represents the value of a person's investment portfolio in thousands of dollars in year t, where t = 0 corresponds to January 1, 2010. Round your answers to three places after the decimal. (a) At what instantaneous rate is the portfolio's value changing on January 1, 2012? (b) Determine the value of V "(2). (c) What do your answers to (a) and (b) tell you about the way the portfolio's value is changing? O the value of the portfolio is increasing, but its rate of increase is slowing down the value of the portfolio is increasing, and its rate of increase is speeding up the value of the portfolio is decreasing, and its rate of decrease is speeding up O the value of the portfolio is decreasing, but its rate of decrease is slowing down (d) On the interval 0

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter6: Exponential And Logarithmic Functions
Section6.1: Exponential Functions
Problem 60SE: The formula for the amount A in an investmentaccount with a nominal interest rate r at any timet is...
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Suppose that (t) :
thousands of dollars in year t, where t = 0 corresponds to January 1, 2010. Round your answers to three
places after the decimal.
(21)1.07' + 5 sin(t) represents the value of a person's investment portfolio in
(a) At what instantaneous rate is the portfolio's value changing on January 1, 2012?
(b) Determine the value of V "(2).
(c) What do your answers to (a) and (b) tell you about the way the portfolio's value is changing?
the value of the portfolio is increasing, but its rate of increase is slowing down
the value of the portfolio is increasing, and its rate of increase is speeding up
the value of the portfolio is decreasing, and its rate of decrease is speeding up
O the value of the portfolio is decreasing, but its rate of decrease is slowing down
(d) On the interval 0 <t < 20, graph the function V(t) = (21)1.07' + 5 sin(t), and describe its behavior in
the context of this problem, that is, in terms of the value of the portfolio over time.
Transcribed Image Text:Suppose that (t) : thousands of dollars in year t, where t = 0 corresponds to January 1, 2010. Round your answers to three places after the decimal. (21)1.07' + 5 sin(t) represents the value of a person's investment portfolio in (a) At what instantaneous rate is the portfolio's value changing on January 1, 2012? (b) Determine the value of V "(2). (c) What do your answers to (a) and (b) tell you about the way the portfolio's value is changing? the value of the portfolio is increasing, but its rate of increase is slowing down the value of the portfolio is increasing, and its rate of increase is speeding up the value of the portfolio is decreasing, and its rate of decrease is speeding up O the value of the portfolio is decreasing, but its rate of decrease is slowing down (d) On the interval 0 <t < 20, graph the function V(t) = (21)1.07' + 5 sin(t), and describe its behavior in the context of this problem, that is, in terms of the value of the portfolio over time.
Expert Solution
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The given function for the investment portfolio is V(t)=(21)1.07t+5sin(t).

 

 

 

 

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