17. The terminal value of an investment for T years at anannually compounded rate, r is given byVT = P[1 + (1+r)+(1+r)?+...+(1+r)T1].What is the value of VT in terms of P, r and T.P((1+r)T-1)В.(1+Pr)T–1)А.rr - 1(P(1+r)™-1–1)P((1+r)"-1)D.В.r – 1r - 1Ο Α. ΑВ. ВОС. СD. D

Answered: Image /qna-images/answer/11c7ff34-db3c-44d8-9433-a8ee2e25b27c.jpg

Answered: . The terminal value of an investment…

Algebra and Trigonometry (6th Edition)

6th Edition

ISBN:9780134463216

Author:Robert F. Blitzer

Publisher:Robert F. Blitzer

ChapterP: Prerequisites: Fundamental Concepts Of Algebra

Section: Chapter Questions

Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...

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Suppose that 40 deer are introduced in a protected area. The population of the herd P can be modeled by P = 40 + 20x / 1 + .05x where x is the time in years since introducing the deer. Determine the time required for the deer population to reach 200.
The monthly payment for a home loan is given by a function f(P,r,N) where P is the principal (the initial size of the loan), r the interest rate, and N the length of the loan in months. Interest rates are expressed as a decimal: A % interest rate is denoted by r = 0.06. If P = 100000, r = 0.06, and N = 240(a 20-year loan), then the monthly payment is f(100000, 0.06, 240) = 1413. Furthermore, with these values we have af ӘР af af = 0.0063, = 7068, = -1.3733 მუ ƏN Estimate: (a) The change in monthly payment per 3500 increase in loan principal: Af≈ dollars (b) The change in monthly payment if the interest rate changes from r = 0.06 to r = 0.07: Af≈ dollars (c) The change in monthly payment if the length of the loan changes from 20 to 23 years: Af≈ dollars
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A certificate of deposit is worth P (1+r)t dollars after t years, where r is the annual interest rate expressed as a decimal, and P is the amount initially deposited. Which investment will be worth more? Investment A, in which P =$7300, r=4%, and t=5 years. Or investment B, in which P= $6300, r=6%, and t= 7years. Round to two decimal places. The value of certificate A will be what? And the value for investment B will be what? And which is worth more, A or B?
A savings account with an interest rate r, which is compounded n times per year, and begins with P as the principal (initial amount), has the discrete nt compounding formula A (t) = P(1+)". This is n because we multiply the amount by itself plus a small amount, determined by the interest rate, and the account grows each time the compounding occurs. For continuous compounding, we use the formula A (t) = Pert , and if we have seen this formula before, we may not have gotten a satisfactory answer as to why we use it, other than some vague notion of "compounding infinity times per year". In this exercise, we'll use Bernoulli's Rule to find the connection. It might be helpful to review the "Indeterminate Powers" section of the video before beginning. Why can we write nt lim,→00 P(1+ )"t P limn¬∞ (1+)™ ? n

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. The terminal value of an investment for T years at an annually compounded rate, r is given by VT = P[1+ (1+r)+(1+r)²+...+(1+r)T1]. What is the value of VT in terms of P, r and T. www