Concept explainers
Level curves of a savings account Suppose you make a one-time deposit of P dollars into a savings account that earns interest at an annual rate of p% compounded continuously. The balance in the account after t years is B(P, r, t) = Pert, where r = p/100 (for example, if the annual interest rate is 4%, then r = 0.04). Let the interest rate be fixed at r = 0.04
a. With a target balance of $2000, find the set of all points (P, t) that satisfy B = 2000. This curve gives all deposits P and times t that result in a balance of $2000.
b. Repeat part (a) with B = $500, $1000, $1500, and $2500, and draw the resulting level curves of the balance function.
c. In general, on one level curve, if t increases, does P increase or decrease?
Want to see the full answer?
Check out a sample textbook solutionChapter 15 Solutions
MyLab Math with Pearson eText -- Standalone Access Card -- for Calculus: Early Transcendentals (3rd Edition)
Additional Math Textbook Solutions
Single Variable Calculus: Early Transcendentals (2nd Edition) - Standalone book
Precalculus Enhanced with Graphing Utilities (7th Edition)
Calculus and Its Applications (11th Edition)
Precalculus: Concepts Through Functions, A Unit Circle Approach to Trigonometry (4th Edition)
- College AlgebraAlgebraISBN:9781305115545Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage LearningFunctions and Change: A Modeling Approach to Coll...AlgebraISBN:9781337111348Author:Bruce Crauder, Benny Evans, Alan NoellPublisher:Cengage LearningAlgebra and Trigonometry (MindTap Course List)AlgebraISBN:9781305071742Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage Learning
- Algebra & Trigonometry with Analytic GeometryAlgebraISBN:9781133382119Author:SwokowskiPublisher:CengageTrigonometry (MindTap Course List)TrigonometryISBN:9781337278461Author:Ron LarsonPublisher:Cengage Learning