Concept explainers
Reminder Round all answers to two decimal places unless otherwise indicated.
Small Business Loan After
a. Find the equilibrium solution.
b. Explain what is happening at the equilibrium solution in practical terms.
c. If the small business expects to pay off the loan eventually, should
Want to see the full answer?
Check out a sample textbook solutionChapter 6 Solutions
Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
- Reminder Round all answers to two decimal places unless otherwise indicated. Inflation The yearly inflation rate tells the percentage by which prices increase. For example, from 1990 through 2000, the inflation rate in the United States remained stable at amount 3 per year. In 1990, an individual retired on a fixed income of 36,000 per year. Assuming that the inflation rate remains at 3, determine how long it will take for the retirement income to deflate to half its 1990 value. Note: To say that retirement income has deflated to half its 1990 value means that prices have doubled.arrow_forwardReminder Round all answers to two decimal places unless otherwise indicated. World Copper Production World production of copper, in millions of tons per year, from 1900 to 2000 is given by C=0.51.033t, where t is the time in years since 1900. a.What production level does this model give for the year 2000? b.If this model were extended to 2025, how could you use your knowledge of copper production in 2024 to estimate copper production in 2025?arrow_forwardReminder Round all answers to two decimal places unless otherwise indicated. Mittenwalde Is Rich In 1562, the town of Mittenwalde lent Berlin 400 guilders repayable at 6 per year. The debt has yet to be repaid. a.Assuming that interest is compounded annually, how much in trillions of guilders did Berlin owe to Mittenwalde in 2012? b.We take the value of a 1562 guilder to be about 0.45 dollar. In trillions of dollars, how much was Berlins debt in 2012? c.Do you think it likely that Mittenwalde will ever collect from Berlin?arrow_forward
- Reminder Round all answers to two decimal places unless otherwise indicated. WendysAccording to a report in The Wall Street Journal, Wendys revenue fell 3.2 to 489.5million in the second quarter of 2015. That represents a quarterly decay rate, as a decimal of e0.0325. Let R(t) denote Wendys revenue, in millions of dollars, t quarters after the second quarter of 2015. Suppose that revenue continues to fall at this same rate. a.Write the equation of change for Wendys revenue. b.Find a formula that gives Wendys revenue t quarters after the second quarter of 2015.arrow_forwardReminder Round all answers to two decimal places unless otherwise indicated. Quarterly Pine Pulpwood PricesIn southwest Georgia, the average pine pulpwood prices vary predictably over the course of the year, primarily because of weather. Prices in 2009 followed this pattern. At the beginning of the first quarter, the average price P was 9 per ton. During the first quarter, prices declined steadily to 8 per ton, then remained steady at 8 per ton through the end of the third quarter. During the fourth quarter, prices increased steadily from 8 to 10 per ton. a.Sketch a graph of pulpwood prices as a function of the quarter in the year. b.What formula for price P as a function of t, the quarter, describes the price from the beginning of the year through the first quarter? c.What formula for price P as a function of t, the quarter, describes the price from the first to the third quarter? d.What formula for price P as a function of t, the quarter, describes the price from the third to the fourth quarter? e.Write a formula for price P throughout the year as a piecewise-defined function of t, the quarter.arrow_forwardReminder Round all answers to two decimal places unless otherwise indicated. Paying Off a Credit Card You owe 8000 on a credit card. Because of the high balance, you stop charging and begin paying off the card. You can afford to make only the minimum monthly payment, which is 5 of the balance. The card carries an APR of 24. Under these conditions, the remaining balance alter t monthly payments is given by B=8000(1.020.95)tdollars, You feel comfortable resuming charging with the card when the balance is between 1000 and 2000. a. Plot the graph of B along with the target values of 1000 and 2000. Use a horizontal span of 0 to 100. b. For what values oft is the function B in the desired range? c. After how many monthly payments can you resume charging? Your answer should be a whole number.arrow_forward
- Reminder Round all answers to two decimal places unless otherwise indicated. Long-Term Population Growth Although exponential growth can often be used to model population growth accurately for some periods of time, there are inevitably, in the long term, limiting factors that make purely exponential models inaccurate. From 1790 to 1860, the U.S. population could be modeled by N=3.931.03tmillion people, where t is the time in years since 1790. If this exponential growth rate had continued until today, what would be the population of the United States have been in 2015? Compare your answer with the actual population of the United States in 2015, which was about 323million.arrow_forwardReminderRound all answers to two decimal places unless otherwise indicated. InflationDuring a period of high inflation, a political leader was up for re-election. Inflation had been increasing during his administration, but he announced that the rate of increase of inflation was decreasing. Draw a graph of inflation versus time that illustrates this situation. Would this announcement convince you that economic conditions were improving?arrow_forwardReminderRound all answers to two decimal places unless otherwise indicated. Equilibrium PriceThis is a continuation of Exorcise 5. The equilibrium price is the price where the supply and demand are the same. In Figure 1.31, the supply curve is in red and the demand curve is in blue. Use this graph to estimate the equilibrium price. How many items are supplied at the equilibrium price? FIGURE 1.31 5. Supply and Demand CurvesA supply curve is a graph that shows the quantity of a product that is made available by suppliers as a function of the price. Similarly, a demand curve is a graph that shows the quantity of a product that consumers are willing to purchase as a function of the price. Examples of supply and demand curves are shown in Figures 1.29 and 1.30. a.Explain in practical terms what the supply curve in Figure 1.29 tells us. b.Explain in practical terms what the demand curve in Figure 1.30 tells us. FIGURE 1.29 A Supply curve FIGURE 1.30 A demand curvearrow_forward
- Reminder Round all answers to two decimal places unless otherwise indicated. t is measured in thousands of years, and C=C(t) is the amount, in grams, of carbon-14 remaining. Carbon-14 unstable radioactive t=Thousandofyears C=Gramsremaining 0 5 5 2.73 10 1.49 15 0.81 20 0.44 a. What is the average yearly rate of change of carbon-14 during the first 5000 years? b. How many grams of carbon-14 would you expect to find remaining after 1236 years? c. What would you expect to be the limiting value of C?arrow_forwardReminder Round all answers to two decimal places unless otherwise indicated. Gray Wolves in Idaho The report cited in Example 4.6 tells us that in 2009, there were 870 gray wolves in Idaho, but that the population declined by 19 that year. For purposes of this problem, we assume that this 19 annual rate of decrease continues. a. Find an exponential model that gives the wolf population W as function of the time t in years since 2009. b. It is expected that the wolf population cannot recover if there are fewer than 20 individuals. How long must this rate of decline continue for the wolf population to reach 20?arrow_forwardReminder Round all answers to two decimal places unless otherwise indicated. Continuous CompoundingThis is a continuation of Exercise 22. In this exercise, we examine the relationship between APR and the APY when interest is compounded continuously-in other words, at every instant. We will see by means of an example that the relationship is Yearlygrowthfactor=eAPR,(4.1) and so APY=eAPR1(4.2) if both the APR and the APY are in decimal form and interest is compounded continuously. Assume that the APR is 10, or 0.1 as a decimal. a.The yearly growth factor for continuous compounding is just the limiting value of the function given by the formula in part b of Exercise 22. Find that limiting value to four decimal places. b.Compute eAPR with an APR of 0.1 as a decimal. c.Use your answers to parts a and b to verify that Equation 4.1 holds in the case where the APR is 10. Note: On the basis of part a, one conclusion is that there is a limit to the increase in the yearly growth factor and hence in the APY as the number of compounding periods increases. We might have expected the APY to increase without limit for more and more frequent compounding. 22. APR and APYRecall that financial institutions sometimes report the annual interest rate that they offer on investments as the APR, often called the nominal interest rate. To indicate how an investment will actually grow, they advertise the annual percentage yield, or APY. In mathematical terms, this is the yearly percentage growth rate for the exponential function that models the account balance. In this exercise and the next, we study the relationship between the APR and the APY. We assume that the APR is 10. or 0.1 as a decimal. To determine the APY when we know the APR, we need to know how often interest is compounded. For example, suppose for the moment that interest is compounded twice a year. Then to say that the APR is 10 means that in half a year, the balance grows by 102 or 5. In other words, the 12-year percentage growth rate is 0.12 as a decimal. Thus, the 12-year growth factor is 1+0.12. To find the yearly growth factor, we need to perform a unit conversion: One year is 2 half-year periods, so the yearly growth factor is (1+0.12)2 or 1.1025. a.What is the yearly growth factor if interest is compounded four times a year? b.Assume that interest is compounded n times each year. Explain why the formula for the yearly growth factor is (1+0.1n)n. c.What is the yearly growth factor if interest is compounded daily? Give your answer to four decimal places.arrow_forward
- Functions and Change: A Modeling Approach to Coll...AlgebraISBN:9781337111348Author:Bruce Crauder, Benny Evans, Alan NoellPublisher:Cengage Learning