When an initial amount of money, A, in dollars, is invested into an account that earns interest continuously, the Future Value of the account after t years is given by the formula: F(t) = Aet, where r is the annual interest rate earned by the account. Let A = $20,000 and r = 7.5%. A) What is the value of the account, in dollars, after 18 years? Give your answer rounded to two decimal places. Answer $ B) What is the exact instantaneous rate of change of the value of the account at exactly 25 years? Give your answer rounded to two decimal places. Answer: C) At what time, in years, is the instantaneous rate of change of the value of the account increasing by $31,871.59 per year? If necessary, round your answer to two decimal places. Answer: After dollars per year Answer: years. D) What is the average rate of change of the future value of the account between year 18 and year 21 (i.e. slope of the secant line connecting the points)? (Round to the nearest penny/cent.) dollars per year. (Round to two decimal places.)

When an initial amount of money, A, in dollars, is invested into an account that earns interest continuously, the Future Value of the account after t years is given by the formula: F(t) = Aet, where r is the annual interest rate earned by the account. Let A = $20,000 and r = 7.5%. A) What is the value of the account, in dollars, after 18 years? Give your answer rounded to two decimal places. Answer $ B) What is the exact instantaneous rate of change of the value of the account at exactly 25 years? Give your answer rounded to two decimal places. Answer: C) At what time, in years, is the instantaneous rate of change of the value of the account increasing by $31,871.59 per year? If necessary, round your answer to two decimal places. Answer: After dollars per year Answer: years. D) What is the average rate of change of the future value of the account between year 18 and year 21 (i.e. slope of the secant line connecting the points)? (Round to the nearest penny/cent.) dollars per year. (Round to two decimal places.)

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...

See similar textbooks