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Math
Mathematical Applications for the Management, Life, and Social Sciences11th Edition

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Chapter 9.2, Problem 43E
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Mathematical Applications for the ...

11th Edition
Ronald J. Harshbarger + 1 other
ISBN: 9781305108042

Solutions

Chapter
Section
Problem 1CP
Problem 2CP
Problem 3CP
Problem 1E
Problem 2E
Problem 3E
Problem 4E
Problem 5E
Problem 6E
Problem 7E
Problem 8E
Problem 9E
Problem 10E
Problem 11E
Problem 12E
Problem 13E
Problem 14E
Problem 15E
Problem 16E
Problem 17E
Problem 18E
Problem 19E
Problem 20E
Problem 21E
Problem 22E
Problem 23E
Problem 24E
Problem 25E
Problem 26E
Problem 27E
Problem 28E
Problem 29E
Problem 30E
Problem 31E
Problem 32E
Problem 33E
Problem 34E
Problem 35E
Problem 36E
Problem 37E
Problem 38E
Problem 39E
Problem 40E
Problem 41E
Problem 42E
Problem 43E
Problem 44E
Problem 45E
Problem 46E
Problem 47E
Problem 48E
Problem 49E
Problem 50E
Problem 51E
Problem 52E
Problem 53E
Problem 54E
BuyFindarrow_forward

Mathematical Applications for the ...

11th Edition
Ronald J. Harshbarger + 1 other
ISBN: 9781305108042
Textbook Problem

Annuities If an annuity can make an unending number of equal payments at the end of the interest periods, it is called a perpetuity. If a lump sum investment of A n is needed to result in n periodic payments of R when the interest rate per period is i, then

A n = R [ 1 − ( 1 + i ) − n i ]

(a) Evaluate lim n → ∞ A n to find a formula for the lump sum payment for a perpetuity.

(b) Find the lump sum investment needed to make payments of $100 per month in perpetuity if interest is 12% compounded monthly.

(a)

To determine

To calculate: The value of the limit, limn→∞An where An=R[1−(1+i)−ni], is discontinuous at any value of x, where x is the advertising expenditure, in thousands of dollars, and y is the sales volume.

Explanation

Given Information:

The investment needed to result in n periodic payments of R with interest rate i, is represented by, An=R[1−(1+i)−ni].

Formula used:

A limit limx→cx can be simplified as,

limx→cx=c

Calculation:

Consider the provided function,

An=R[1−(1+i)−ni]

Consider the provided limit,

limn→∞R[1−1

(b)

To determine

To calculate: The lump sum investment required for making the payments $100 per month in perpetuity for an interest rate of 12% compounded monthly.

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Sect-9.1 P-1CPSect-9.1 P-2CPSect-9.1 P-3CPSect-9.1 P-4CPSect-9.1 P-5CPSect-9.1 P-6CPSect-9.1 P-7CPSect-9.1 P-8CPSect-9.1 P-9CPSect-9.1 P-10CP
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Research Methods for the Behavioral Sciences (MindTap Course List)

Finding a Piecewise Smooth Parametrization In Exercises 38, find a piecewise smooth parametrization of the path...

Calculus (MindTap Course List)

Find the solution. Decibel gain Find the dB gain of an amplifier when EO=60 volts and EI=0.3 volt. Hint:dBgain=...

College Algebra (MindTap Course List)

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