The rate of increase in subprime mortgage debt to the about $ 1 billion at the start of 2005 ( t = 5 ) when the value of risky mortgages debt remaining in the United States during the real estate run-up during 2000 − 2008 is approximated by, A ( t ) = 1 , 350 1 + 4.2 ( 1.7 ) − t billion dollars Where, t is the time since 2000 ( 0 ≤ t ≤ 8 ) .

BuyFind

Finite Mathematics and Applied Cal...

7th Edition
Stefan Waner + 1 other
Publisher: Cengage Learning
ISBN: 9781337274203
BuyFind

Finite Mathematics and Applied Cal...

7th Edition
Stefan Waner + 1 other
Publisher: Cengage Learning
ISBN: 9781337274203

Solutions

Chapter 11.5, Problem 106E

(a)

To determine

To calculate: The rate of increase in subprime mortgage debt to the about $1 billion at the start of 2005(t=5) when the value of risky mortgages debt remaining in the United States during the real estate run-up during 20002008 is approximated by,

A(t)=1,3501+4.2(1.7)tbillion dollars

Where, t is the time since 2000 (0t8).

(b)

To determine

To calculate: The value of limt+A(t) and limt+A(t) and interpret the answer for the subprime or risky mortgage. when the value of risky mortgages debt remaining in the United States during the real estate run-up during 20002008 is approximated by,

A(t)=1,3501+4.2(1.7)tbillion dollars

Where, t is the time since 2000 (0t8).

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