Score: 0 of 1 pt 14 of 15(13 complete) HW Score: 62 Bus Econ 3.3.29 $800 is nest

Question

Score: 0 of 1 pt 14 of 15(13 complete) HW Score: 62 Bus Econ 3.3.29 $800 is nested in an account that pays 3% compounded annually, the total amount, A(t), in the account after t years is A(t)= 800(1.03)t a. Find the average rate of change per year of the total amount in the account for the first five years of the investment (from t 0 to t-5). b. Find the average rate of change per year of the total amount in the account for the second five years of the investment (from t-5 to t-10), c. Estimate the rate of change for t 5 a. Which ofthe following is the correct formula for finding the average rate of change from t = a to t b? A(0)-A(5) Click to select your answer and then click Check Answer 3 Clear All 0 Type here to search

Explanation / Answer

From the given question,

principal(P)= $800

rate(r)= 3% annually

Amount(A)=800(1.03)^t

a) A(0)= 800(1.03)^0=$800

A(5)= 800(1.03)^5=$927.42

Average rate change per year=(927.42-800)/5= $25.48

b)A(5)= 800(1.03)^5=$927.42

A(10)= 800(1.03)^10=$1075.13

Average rate change per year=(1075.13-927.42)/5= $29.54

c)A=800*1.03^t

dA/dt= 800t*1.03^(t-1)

dA/dt at t=5= 800*5*1.03^(5-1)=4502

Instantaneous rate of change for t=5 is $4502

--------------------------------------------------------------------------------

a) average rate of change from t=a to t=b is

[A(5)-A(0)]/5 option(c)

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.