Explanation Formula used: The relation of the internal rate of return r of investment (yields returns of $ R at the end of each period over N period) with the initial outlay C is given by C r + R [ ( 1 + r ) − N ] = 0 . The value of r can be obtained by performing the iteration r n + 1 = r n − C r n + R [ ( 1 + r n ) − N − 1 ] C − N R ( 1 + r n ) − N − 1 . Calculation: It is given that the loan is secured at the rate of $400000 from bank and agreed to repay the loan in equal monthly installments of $2577 over 25 years. That is, R = $ 2577 C = $ 400000 . The loan is paid in installments in each month over 25 years, hence the value of N is obtained as, N = 12 × 25 = 300 Substitute R = $ 2577 C = $ 400000 , N = 300 in C r + R [ ( 1 + r ) − N ] = 0 as follows: C r + R [ ( 1 + r ) − N ] = 0 400000 r + 2577 [ ( 1 + r ) − 300 ] = 0 Graph the above equation and obtain the value of r from the graph as shown below: From the given figure, it can be observed that the graph of the equation is a straight line. Thus, from the graph the value of r is obtained as 0.0050 _ . Using the above formula and obtain the value of r n + 1 as follows: Let r 0 = 1 . Substitute n = 0 , r 0 = 1 , R = $ 2577 C = $ 400000 , N = 300 in r n + 1 = r n − C r n + R [ ( 1 + r n ) − N − 1 ] C − N R ( 1 + r n ) − N − 1 <

Applied Calculus for the Managerial, Life, and Social Sciences

10th Edition

ISBN: 9781305887831

Author: Tan

Publisher: CENGAGE CO

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Chapter 11.7, Problem 35E

To determine

The value of r and the annual interest rate accurate to four decimal places.

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Chapter 11 Solutions

Applied Calculus for the Managerial, Life, and Social Sciences

Ch. 11.1 - Prob. 1CQ Ch. 11.1 - Prob. 2CQ Ch. 11.1 - Prob. 1E Ch. 11.1 - In Exercises 110, find the first three Taylor...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 - In Exercises 110, find the first three Taylor...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 - In Exercises 1120, find the nth Taylor polynomial...Ch. 11.1 - Prob. 16E Ch. 11.1 - Prob. 17E Ch. 11.1 - Prob. 18E Ch. 11.1 - Prob. 19E 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 - Prob. 31E Ch. 11.1 - Prob. 32E Ch. 11.1 - Prob. 33E Ch. 11.1 - Prob. 34E Ch. 11.1 - Let f(x) = ex. a. Find a bound in the error...Ch. 11.1 - Prob. 36E Ch. 11.1 - Prob. 37E Ch. 11.1 - Prob. 38E Ch. 11.1 - Prob. 39E Ch. 11.1 - Prob. 40E Ch. 11.1 - Prob. 41E Ch. 11.1 - According to a joint study conducted by Oxnards...Ch. 11.1 - Prob. 43E Ch. 11.1 - Prob. 44E Ch. 11.1 - Prob. 45E Ch. 11.1 - Prob. 46E Ch. 11.2 - Prob. 1CQ Ch. 11.2 - Prob. 1E Ch. 11.2 - Prob. 2E Ch. 11.2 - Prob. 3E Ch. 11.2 - Prob. 4E Ch. 11.2 - Prob. 5E Ch. 11.2 - Prob. 6E Ch. 11.2 - Prob. 7E Ch. 11.2 - Prob. 8E Ch. 11.2 - Prob. 9E Ch. 11.2 - Prob. 10E Ch. 11.2 - Prob. 11E Ch. 11.2 - In Exercises 1021, find the nth term of the...Ch. 11.2 - Prob. 13E Ch. 11.2 - Prob. 14E 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 - Prob. 22E Ch. 11.2 - Prob. 23E Ch. 11.2 - Prob. 24E Ch. 11.2 - Prob. 25E 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. 11.2 - Prob. 31E Ch. 11.2 - Prob. 32E Ch. 11.2 - Prob. 33E Ch. 11.2 - Prob. 34E Ch. 11.2 - Prob. 35E Ch. 11.2 - Prob. 36E Ch. 11.2 - Prob. 37E Ch. 11.2 - Prob. 38E Ch. 11.2 - Prob. 39E Ch. 11.2 - Prob. 40E Ch. 11.2 - Prob. 41E Ch. 11.2 - Prob. 42E Ch. 11.2 - Prob. 43E Ch. 11.2 - Prob. 44E Ch. 11.2 - Prob. 45E Ch. 11.2 - Prob. 46E Ch. 11.2 - Prob. 47E Ch. 11.2 - Prob. 48E Ch. 11.2 - Prob. 49E Ch. 11.2 - Prob. 50E Ch. 11.2 - Prob. 51E Ch. 11.2 - Prob. 52E Ch. 11.3 - Prob. 1CQ Ch. 11.3 - Prob. 2CQ Ch. 11.3 - Prob. 1E Ch. 11.3 - Prob. 2E Ch. 11.3 - Prob. 3E Ch. 11.3 - Prob. 4E Ch. 11.3 - Prob. 5E Ch. 11.3 - Prob. 6E 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 - Prob. 16E Ch. 11.3 - Prob. 17E Ch. 11.3 - Prob. 18E 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 - Prob. 24E Ch. 11.3 - Prob. 25E Ch. 11.3 - Prob. 26E Ch. 11.3 - Prob. 27E Ch. 11.3 - Prob. 28E Ch. 11.3 - Prob. 29E Ch. 11.3 - Prob. 30E Ch. 11.3 - Prob. 31E Ch. 11.3 - Prob. 32E Ch. 11.3 - Prob. 33E Ch. 11.3 - Prob. 34E Ch. 11.3 - Prob. 35E Ch. 11.3 - Prob. 36E Ch. 11.3 - Prob. 37E Ch. 11.3 - Prob. 38E Ch. 11.3 - Prob. 39E Ch. 11.3 - Prob. 40E Ch. 11.3 - Prob. 41E Ch. 11.3 - Prob. 42E Ch. 11.3 - Suppose that a dose of C units of a certain drug...Ch. 11.3 - Prob. 44E Ch. 11.3 - In Exercises 4548, determine whether the statement...Ch. 11.3 - Prob. 46E Ch. 11.3 - Prob. 47E Ch. 11.3 - Prob. 48E Ch. 11.4 - Prob. 1CQ Ch. 11.4 - Prob. 2CQ Ch. 11.4 - Prob. 3CQ Ch. 11.4 - Prob. 1E Ch. 11.4 - Prob. 2E Ch. 11.4 - Prob. 3E Ch. 11.4 - Prob. 4E Ch. 11.4 - Prob. 5E Ch. 11.4 - Prob. 6E Ch. 11.4 - Prob. 7E Ch. 11.4 - Prob. 8E Ch. 11.4 - Prob. 9E Ch. 11.4 - Prob. 10E Ch. 11.4 - Prob. 11E Ch. 11.4 - Prob. 12E Ch. 11.4 - Prob. 13E Ch. 11.4 - Prob. 14E Ch. 11.4 - Prob. 15E Ch. 11.4 - Prob. 16E Ch. 11.4 - Prob. 17E Ch. 11.4 - Prob. 18E Ch. 11.4 - Prob. 19E Ch. 11.4 - Prob. 20E Ch. 11.4 - Prob. 21E Ch. 11.4 - Prob. 22E Ch. 11.4 - Prob. 23E Ch. 11.4 - Prob. 24E Ch. 11.4 - Prob. 25E Ch. 11.4 - Prob. 26E Ch. 11.4 - Prob. 27E Ch. 11.4 - Prob. 28E Ch. 11.4 - Prob. 29E Ch. 11.4 - Prob. 30E Ch. 11.4 - Prob. 31E Ch. 11.4 - Prob. 32E Ch. 11.4 - Prob. 33E Ch. 11.4 - Prob. 34E Ch. 11.4 - Prob. 35E Ch. 11.4 - Prob. 36E Ch. 11.4 - Prob. 37E Ch. 11.4 - Prob. 38E Ch. 11.4 - Prob. 39E Ch. 11.4 - Prob. 40E Ch. 11.4 - Prob. 41E Ch. 11.4 - Prob. 42E Ch. 11.4 - Prob. 43E Ch. 11.4 - Prob. 44E Ch. 11.4 - Prob. 45E Ch. 11.4 - Prob. 46E Ch. 11.4 - Prob. 47E Ch. 11.4 - Prob. 48E Ch. 11.4 - Prob. 49E Ch. 11.4 - Prob. 50E Ch. 11.4 - Prob. 51E Ch. 11.4 - Prob. 52E Ch. 11.4 - Prob. 53E Ch. 11.4 - Prob. 54E Ch. 11.4 - Prob. 55E Ch. 11.4 - Prob. 56E Ch. 11.4 - Prob. 57E Ch. 11.4 - Prob. 58E Ch. 11.4 - Prob. 59E Ch. 11.4 - Prob. 60E Ch. 11.5 - Prob. 1CQ Ch. 11.5 - a. What is the radius of convergence of a power...Ch. 11.5 - Prob. 3CQ Ch. 11.5 - Prob. 4CQ Ch. 11.5 - Prob. 5CQ Ch. 11.5 - Prob. 1E Ch. 11.5 - Prob. 2E Ch. 11.5 - Prob. 3E Ch. 11.5 - Prob. 4E Ch. 11.5 - Prob. 5E Ch. 11.5 - Prob. 6E Ch. 11.5 - Prob. 7E Ch. 11.5 - Prob. 8E Ch. 11.5 - Prob. 9E Ch. 11.5 - Prob. 10E Ch. 11.5 - Prob. 11E Ch. 11.5 - Prob. 12E Ch. 11.5 - Prob. 13E Ch. 11.5 - Prob. 14E Ch. 11.5 - Prob. 15E Ch. 11.5 - Prob. 16E Ch. 11.5 - Prob. 17E Ch. 11.5 - Prob. 18E Ch. 11.5 - Prob. 19E Ch. 11.5 - Prob. 20E Ch. 11.5 - Prob. 21E Ch. 11.5 - Prob. 22E Ch. 11.5 - Prob. 23E Ch. 11.5 - Prob. 24E Ch. 11.5 - Prob. 25E Ch. 11.5 - Prob. 26E Ch. 11.5 - Prob. 27E Ch. 11.5 - Prob. 28E Ch. 11.5 - Prob. 29E Ch. 11.5 - Prob. 30E Ch. 11.5 - Prob. 31E Ch. 11.5 - Prob. 32E Ch. 11.5 - Prob. 33E Ch. 11.5 - Prob. 34E Ch. 11.5 - Prob. 35E Ch. 11.5 - Prob. 36E Ch. 11.6 - Prob. 1CQ Ch. 11.6 - Prob. 2CQ Ch. 11.6 - Prob. 3CQ Ch. 11.6 - Prob. 1E Ch. 11.6 - Prob. 2E Ch. 11.6 - Prob. 3E Ch. 11.6 - Prob. 4E Ch. 11.6 - Prob. 5E Ch. 11.6 - Prob. 6E Ch. 11.6 - Prob. 7E Ch. 11.6 - Prob. 8E Ch. 11.6 - Prob. 9E Ch. 11.6 - Prob. 10E Ch. 11.6 - Prob. 11E Ch. 11.6 - Prob. 12E Ch. 11.6 - Prob. 13E Ch. 11.6 - Prob. 14E Ch. 11.6 - Prob. 15E Ch. 11.6 - Prob. 16E Ch. 11.6 - Prob. 17E Ch. 11.6 - Prob. 18E Ch. 11.6 - Prob. 19E Ch. 11.6 - Prob. 20E Ch. 11.6 - Prob. 21E Ch. 11.6 - Prob. 22E Ch. 11.6 - Prob. 23E Ch. 11.6 - Prob. 24E Ch. 11.6 - Prob. 25E Ch. 11.6 - Prob. 26E Ch. 11.6 - Prob. 27E Ch. 11.6 - Prob. 28E Ch. 11.6 - Prob. 29E Ch. 11.6 - Prob. 30E Ch. 11.6 - Prob. 31E Ch. 11.6 - Prob. 32E Ch. 11.7 - Prob. 1CQ Ch. 11.7 - Prob. 2CQ Ch. 11.7 - Prob. 3CQ Ch. 11.7 - Prob. 1E Ch. 11.7 - Prob. 2E Ch. 11.7 - Prob. 3E Ch. 11.7 - Prob. 4E Ch. 11.7 - Prob. 5E Ch. 11.7 - Prob. 6E Ch. 11.7 - Prob. 7E Ch. 11.7 - Prob. 8E Ch. 11.7 - Prob. 9E Ch. 11.7 - Prob. 10E Ch. 11.7 - Prob. 11E Ch. 11.7 - Prob. 12E Ch. 11.7 - Prob. 13E Ch. 11.7 - Prob. 14E Ch. 11.7 - Prob. 15E Ch. 11.7 - Prob. 16E Ch. 11.7 - Prob. 17E Ch. 11.7 - Prob. 18E Ch. 11.7 - Prob. 19E Ch. 11.7 - Prob. 20E Ch. 11.7 - Prob. 21E Ch. 11.7 - Prob. 22E Ch. 11.7 - In Exercises 2328, make a rough sketch of the...Ch. 11.7 - Prob. 24E Ch. 11.7 - Prob. 25E Ch. 11.7 - Prob. 26E Ch. 11.7 - Prob. 27E Ch. 11.7 - Prob. 28E Ch. 11.7 - Prob. 29E Ch. 11.7 - Prob. 30E Ch. 11.7 - Prob. 31E Ch. 11.7 - Prob. 32E Ch. 11.7 - Prob. 33E Ch. 11.7 - Prob. 34E Ch. 11.7 - Prob. 35E Ch. 11.7 - Prob. 36E Ch. 11.7 - Prob. 37E Ch. 11.7 - Prob. 38E Ch. 11.7 - Prob. 39E Ch. 11.7 - Prob. 40E Ch. 11.7 - Prob. 41E Ch. 11.7 - Prob. 1TE Ch. 11.7 - Prob. 2TE Ch. 11.7 - Prob. 3TE Ch. 11.7 - Prob. 4TE Ch. 11.7 - Prob. 5TE Ch. 11.7 - Prob. 6TE Ch. 11.7 - Prob. 7TE Ch. 11.7 - Prob. 8TE Ch. 11 - Prob. 1CRQ Ch. 11 - Prob. 2CRQ Ch. 11 - Prob. 3CRQ Ch. 11 - Prob. 4CRQ Ch. 11 - Prob. 5CRQ Ch. 11 - Prob. 6CRQ Ch. 11 - Prob. 7CRQ Ch. 11 - Prob. 8CRQ Ch. 11 - Prob. 9CRQ Ch. 11 - Prob. 10CRQ Ch. 11 - Prob. 1RE Ch. 11 - Prob. 2RE Ch. 11 - Prob. 3RE Ch. 11 - Prob. 4RE Ch. 11 - Prob. 5RE Ch. 11 - Prob. 6RE Ch. 11 - Prob. 7RE Ch. 11 - Prob. 8RE Ch. 11 - Prob. 9RE Ch. 11 - Prob. 10RE Ch. 11 - Prob. 11RE Ch. 11 - Prob. 12RE Ch. 11 - Prob. 13RE Ch. 11 - Prob. 14RE Ch. 11 - Prob. 15RE Ch. 11 - Prob. 16RE Ch. 11 - Prob. 17RE Ch. 11 - Prob. 18RE Ch. 11 - Prob. 19RE Ch. 11 - Prob. 20RE Ch. 11 - Prob. 21RE Ch. 11 - In Exercises 21 and 22, find the sum of the...Ch. 11 - Prob. 23RE Ch. 11 - Prob. 24RE Ch. 11 - Prob. 25RE Ch. 11 - Prob. 26RE Ch. 11 - Prob. 27RE Ch. 11 - Prob. 28RE Ch. 11 - Prob. 29RE Ch. 11 - Prob. 30RE Ch. 11 - Prob. 31RE Ch. 11 - Prob. 32RE Ch. 11 - Prob. 33RE Ch. 11 - Prob. 34RE Ch. 11 - Prob. 35RE Ch. 11 - Prob. 36RE Ch. 11 - Prob. 37RE Ch. 11 - Prob. 38RE Ch. 11 - Prob. 39RE Ch. 11 - Prob. 40RE Ch. 11 - Prob. 41RE Ch. 11 - Prob. 42RE Ch. 11 - Prob. 43RE Ch. 11 - Prob. 44RE Ch. 11 - Prob. 45RE Ch. 11 - Prob. 46RE Ch. 11 - Prob. 47RE Ch. 11 - Prob. 48RE Ch. 11 - Prob. 49RE Ch. 11 - Prob. 50RE Ch. 11 - Prob. 1BM Ch. 11 - Prob. 2BM Ch. 11 - Determine whether the series converges or...Ch. 11 - Prob. 4BM Ch. 11 - Prob. 5BM

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The value of r and the annual interest rate accurate to four decimal places.

Solution Summary: The author analyzes the relationship between the internal rate of return r of investment (yields returns of R at the end of each period over N period) and initial outlay C.

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The value of r and the annual interest rate accurate to four decimal places.

Chapter 11 Solutions