During the real estate run-up in 2000-2008, the value of subprime (normally classified as risky) mortgage debt outstanding in the United States could be approximated by 1,350 A(t) = billion dollars (0 ≤t≤ 8) 1+ 4.2(1.7)-t t years after the start of 2000.† (a) How fast, to the nearest $1 billion, was subprime mortgage debt increasing at the start of 2004? $ billion per yr (b) Compute lim A(t) and lim A'(t). 1418 14+∞ lim A(t) = 24+0 lim A'(t) = 1410 What do the answers tell you about subprime mortgages? Had the trend continued indefinitely, the rate of change in the value of subprime mortgage debt outstanding would have approached $ per year in the long run. billion

During the real estate run-up in 2000-2008, the value of subprime (normally classified as risky) mortgage debt outstanding in the United States could be approximated by 1,350 A(t) = billion dollars (0 ≤t≤ 8) 1+ 4.2(1.7)-t t years after the start of 2000.† (a) How fast, to the nearest $1 billion, was subprime mortgage debt increasing at the start of 2004? $ billion per yr (b) Compute lim A(t) and lim A'(t). 1418 14+∞ lim A(t) = 24+0 lim A'(t) = 1410 What do the answers tell you about subprime mortgages? Had the trend continued indefinitely, the rate of change in the value of subprime mortgage debt outstanding would have approached $ per year in the long run. billion

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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Question

During the real estate run-up in 2000-2008, the value of subprime (normally classified as risky) mortgage debt outstanding in the United States could be approximated by
1,350
A(t) =
billion dollars (0 ≤t≤ 8)
1+ 4.2(1.7)]
t years after the start of 2000.t
(a) How fast, to the nearest $1 billion, was subprime mortgage debt increasing at the start of 2004?
$
billion per yr
(b) Compute lim A(t) and lim A'(t).
t → +∞0
t → +∞o
lim A(t) =
t→ +∞
lim A'(t)
t +co
=
What do the answers tell you about subprime mortgages?
Had the trend continued indefinitely, the rate of change in the value of subprime mortgage debt outstanding would have approached $
per year in the long run.
billion

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