You plan to invest in an account which pays 6.5% compounded continuously. If the investment period is for 8 years, then A(P) = Pe0.065 - 8 = Pe 0.52 gives the total balance of P dollars. a. Find a formula for A'(P). b. Find and interpret A'(8000). c. Compare the approximation to the actual change. a. A'(P) = e0.52 (Type an exact answer in terms of e.) b. A'(8000) = 1.68' dollars increased in the total amount per dollar increase in the initial investment (Round to the nearest cent as needed.) Interpret A'(8000) = 1.68 CA. The future value of a 9 year investment of $8000 will be $ more than the future value of a 9 year investment of $8000. O B. The future value of a 9 year investment of $8001 will be $ more than the future value of a 9 year investment of S8000. O C. The future value of 8 year investment of $8000 at 7.5% will be S more than the future value of a 8 year investment of $4000 at 6.5%. D. The future value of a 8 year investment of $8001 will be $ 1.68 more than the future value of a 8 year investment of $8000. c. A(8001) – A(8000) =O dollars per year. (Round to the nearest cent as needed.)

You plan to invest in an account which pays 6.5% compounded continuously. If the investment period is for 8 years, then A(P) = Pe0.065 - 8 = Pe 0.52 gives the total balance of P dollars. a. Find a formula for A'(P). b. Find and interpret A'(8000). c. Compare the approximation to the actual change. a. A'(P) = e0.52 (Type an exact answer in terms of e.) b. A'(8000) = 1.68' dollars increased in the total amount per dollar increase in the initial investment (Round to the nearest cent as needed.) Interpret A'(8000) = 1.68 CA. The future value of a 9 year investment of $8000 will be $ more than the future value of a 9 year investment of $8000. O B. The future value of a 9 year investment of $8001 will be $ more than the future value of a 9 year investment of S8000. O C. The future value of 8 year investment of $8000 at 7.5% will be S more than the future value of a 8 year investment of $4000 at 6.5%. D. The future value of a 8 year investment of $8001 will be $ 1.68 more than the future value of a 8 year investment of $8000. c. A(8001) – A(8000) =O dollars per year. (Round to the nearest cent as needed.)

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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Concept explainers

Differential Equations

Have you ever observed the movement of the satellites and rockets or how the planets go around the sun in their orbits? How will you determine their motion? Definitely they follow some scientific laws and these kinds of problems are framed as differential equations.

Question

You plan to invest in an account which pays 6.5% compounded continuously.
If the investment period is for 8 years, then A(P) = Pe 0.065 •8 = Pe 0.52 gives the total balance of P dollars.
a. Find a formula for A'(P).
b. Find and interpret A'(8000).
c. Compare the approximation to the actual change.
a. A'(P) = e0.52 (Type an exact answer in terms of e.)
b. A'(8000) = 1.68 dollars increased in the total amount per dollar increase in the initial investment
(Round to the nearest cent as needed.)
Interpret A'(8000) = 1.68
GA. The future value of a 9 year investment of $8000 will be $
more than the future value of a 9 year investment of S8000.
O B. The future value of a 9 year investment of $8001 will be $ more than the future value of a 9 year investment of S8000.
O C. The future value of 8 year investment of $8000 at 7.5% will be $
more than the future value of a 8 year investment of $4000 at 6.5%.
D. The future value of a 8 year investment of $8001 will be $ 1.68 more than the future value of a 8 year investment of $8000.
c. A(8001) - A(8000) =
dollars per year. (Round to the nearest cent as needed.)

Expert Solution

Step 1

The interest of the investment plan is 6.5% and the period of investment is 8 years.

The function gives total balance of P dollars is $A (P) = P e^{0.52}$ .

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