Explanation Given information: The investment is $ 500 and the returns for the first, second, and third months are $ 100 , $ 200 , and $ 300 respectively. Explanation: Let’s assume the internal rate per month is i If $ 500 is invested for three months, then the final amount after three months would be A = 500 ( 1 + i ) 3 . But, $ 100 returned at the end of the first month, so there wasn’t any interest on $ 100 for the next two months. That is, A 1 = 100 ( 1 + i ) 2 Similarly, $ 200 returned at the end of second month, so there wasn’t any interest on $ 200 for one month. That is, A 2 = 200 ( 1 + i ) Finally, $ 300 returned at the end of third month. By combing all the above investments and returns, then the equation becomes A − A 1 − A 2 − 300 = 0 . By substituting values of A , A 1 , and A 2 ⇒ 500 ( 1 + i ) 3 − 100 ( 1 + i ) 2 − 200 ( 1 + i ) − 300 = 0 By substituting ( 1 + i ) = x ⇒ 500 x 3 − 100 x 2 − 200 x − 300 = 0 ⇒ f ( x ) = 500 x 3 − 100 x 2 − 200 x − 300 Now, roughly graph the function by using the curve-sketching techniques to get the value of x 0 By applying the curve-sketching techniques, a rough sketch of the graph of f ( x ) = 500 x 3 − 100 x 2 − 200 x − 300 is as below. From the graph, it is observed that x − intercept lies in between 1 and 2 , so x 0 = 1 The formula for the Newton-Raphson algorithm is x new = x old − f ( x old ) f ' ( x old ) So, differentiate f ( x ) with respect to x ⇒ f ' ( x ) = 1500 x 2 − 200 x − 200 Substitute the value of x 0 in f ( x ) and f ' ( x ) , and calculate f ( x 0 ) and f ' ( x 0 ) respectively

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Chapter 11.2, Problem 13E

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The internal rate of return of an investment, when $ 500 yields returns of $ 100, $ 200, and $ 300 at the end of first, second, and the third months respectively.

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Chapter 11.2, Problem 12E

Chapter 11.2, Problem 14E

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Ch. 11.1 - Determine the third Taylor polynomial of f(x)=cosx...Ch. 11.1 - Prob. 2CYU Ch. 11.1 - Prob. 1E Ch. 11.1 - Prob. 2E Ch. 11.1 - Prob. 3E Ch. 11.1 - Prob. 4E Ch. 11.1 - Prob. 5E Ch. 11.1 - Prob. 6E Ch. 11.1 - Prob. 7E Ch. 11.1 - Prob. 8E

Ch. 11.1 - Prob. 9E Ch. 11.1 - Prob. 10E Ch. 11.1 - Prob. 11E Ch. 11.1 - Prob. 12E Ch. 11.1 - Prob. 13E Ch. 11.1 - Prob. 14E Ch. 11.1 - Prob. 15E Ch. 11.1 - Prob. 16E Ch. 11.1 - Prob. 17E Ch. 11.1 - Prob. 18E Ch. 11.1 - Determine the third and fourthTaylor polynomial...Ch. 11.1 - Prob. 20E Ch. 11.1 - Prob. 21E Ch. 11.1 - Prob. 22E Ch. 11.1 - Prob. 23E Ch. 11.1 - Prob. 24E Ch. 11.1 - Prob. 25E Ch. 11.1 - Prob. 26E Ch. 11.1 - Prob. 27E Ch. 11.1 - Prob. 28E Ch. 11.1 - Prob. 29E Ch. 11.1 - Prob. 30E Ch. 11.1 - Graph the function Y1=11x and its fourth Taylor...Ch. 11.1 - Prob. 32E Ch. 11.1 - Prob. 33E Ch. 11.1 - Prob. 34E Ch. 11.2 - Prob. 1CYU Ch. 11.2 - Prob. 2CYU Ch. 11.2 - In Exercises 18, use three repetitions of the...Ch. 11.2 - In Exercises 18, use three repetitions of the...Ch. 11.2 - Prob. 3E Ch. 11.2 - Prob. 4E Ch. 11.2 - In Exercises 18, use three repetitions of the...Ch. 11.2 - Prob. 6E Ch. 11.2 - Prob. 7E Ch. 11.2 - Prob. 8E Ch. 11.2 - Sketch the graph of y=x3+2x+2, and use the...Ch. 11.2 - Prob. 10E Ch. 11.2 - Prob. 11E Ch. 11.2 - Prob. 12E Ch. 11.2 - Prob. 13E Ch. 11.2 - Internet Rate of Return An investor buys a bond...Ch. 11.2 - Prob. 15E Ch. 11.2 - Prob. 16E Ch. 11.2 - Prob. 17E Ch. 11.2 - Prob. 18E Ch. 11.2 - Prob. 19E Ch. 11.2 - Prob. 20E Ch. 11.2 - Prob. 21E Ch. 11.2 - Figure 9contains the graph of the function...Ch. 11.2 - Prob. 23E Ch. 11.2 - Prob. 24E Ch. 11.2 - Exercises 25 and 26 present two examples in which...Ch. 11.2 - Prob. 26E Ch. 11.2 - Prob. 27E Ch. 11.2 - Prob. 28E Ch. 11.2 - Prob. 29E Ch. 11.2 - Prob. 30E Ch. 11.3 - Determine the sum of the geometric series...Ch. 11.3 - Prob. 2CYU Ch. 11.3 - Determine the sums of the following geometric...Ch. 11.3 - Prob. 2E Ch. 11.3 - Prob. 3E Ch. 11.3 - Determine the sums of the following geometric...Ch. 11.3 - Prob. 5E Ch. 11.3 - Determine the sums of the following geometric...Ch. 11.3 - Prob. 7E Ch. 11.3 - Prob. 8E Ch. 11.3 - Prob. 9E Ch. 11.3 - Prob. 10E Ch. 11.3 - Prob. 11E Ch. 11.3 - Prob. 12E Ch. 11.3 - Prob. 13E Ch. 11.3 - Prob. 14E Ch. 11.3 - Prob. 15E Ch. 11.3 - Sum an appropriate infinite series to find the...Ch. 11.3 - Prob. 17E Ch. 11.3 - Sum an appropriate infinite series to find the...Ch. 11.3 - Prob. 19E Ch. 11.3 - Prob. 20E Ch. 11.3 - Prob. 21E Ch. 11.3 - Prob. 22E Ch. 11.3 - Prob. 23E Ch. 11.3 - The Multiplier Effect Compute the effect of a 20...Ch. 11.3 - Perpetuity Consider a perpetuity that promises to...Ch. 11.3 - Prob. 26E Ch. 11.3 - Bonus plus Taxes on Taxes A generous corporation...Ch. 11.3 - Total Distance Travelled by a Bouncing Ball The...Ch. 11.3 - Elimination of a Drug A patient receives 6 mg of a...Ch. 11.3 - Elimination of a Drug A patient receives 2 mg of a...Ch. 11.3 - Drug Dosage A patient receives M mg of a certain...Ch. 11.3 - Drug Dosage A patient receives M mg of a certain...Ch. 11.3 - Prob. 33E Ch. 11.3 - The infinite series a1+a2+a3+ has partial sums...Ch. 11.3 - Prob. 35E Ch. 11.3 - Prob. 36E Ch. 11.3 - Prob. 37E Ch. 11.3 - Determine the sums of the following infinite...Ch. 11.3 - 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The internal rate of return of an investment, when $ 500 yields returns of $ 100 , $ 200 , and $ 300 at the end of first, second, and the third months respectively.

Solution Summary: The author explains that the internal rate of return of an investment is 8.21% per month.

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The internal rate of return of an investment, when $ 500 yields returns of $ 100, $ 200, and $ 300 at the end of first, second, and the third months respectively.

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Chapter 11 Solutions