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
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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.)
Transcribed Image Text: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 AP=Pe0.52.

 

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