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Finite Mathematics and Applied Cal...

7th Edition
Stefan Waner + 1 other
ISBN: 9781337274203

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Chapter
Section
BuyFindarrow_forward

Finite Mathematics and Applied Cal...

7th Edition
Stefan Waner + 1 other
ISBN: 9781337274203
Textbook Problem

In Exercises 63-66, obtain an exponential function in the form f ( t ) = A e r t . [HINT: See Example 5.]

f ( t ) is the value after t years of a $1,000 investment depreciating continuously at an annual rate of 6.3%.

To determine

To calculation: The exponential function in the form of f(t)=Art if f(t)

is the value after t years of a $1000 investment depreciating at 6.3% interest rate continuously.

Explanation

Given Information:

f(t)

is the value after t years of a $1000 investment earning 5.3% interest compounded continuously.

Calculation:

Consider the expression of continuous depreciation:

f(t)=Aert

Here, f(t) is the total amount, A is the principle amount, r

is the rate of interest and t is the time.

As given, amount is $1000 and rate is 6.3%

Use negative sign for rate as depreciation is taking place.

Assume, A=1000 and r=0

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