Mathematics for Machine Technology
Mathematics for Machine Technology
7th Edition
ISBN: 9781133281450
Author: John C. Peterson, Robert D. Smith
Publisher: Cengage Learning
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Chapter 19, Problem 12A

Analyze each of the following problems to determine whether the problem is a direct or inverse proportion. Set up the proportion and solve.
12. The production rate for each of three machines is the same. Using these three machines, 720 parts are produced in 1.6 hours. How many hours will it take two of these machines to produce 720 parts?

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(i) For a given constant a > 0, let an investor's preference be represented by the Gaussian utility function U(w)=1-e-aw² For what range of wealth level w will the investor be non-satiated and risk-averse? Explain your answer. (ii) Give an example of a utility function that exhibits DARA and verify it. (iii) Determine the class of utility functions with relative risk aversion coefficient R(w)= w², w> 0.
Sara (a 23 year old college graduate) is starting her first career.  She met with a financial planner and has determined that she wants $1,000,000 when she retires at the age of 63.  She has found an annuity that pays 4.25%, compounded quarterly. What will she need to save each month, if Sara waits 20 years to start saving?               N:                           P/Y:             I%:                         C/Y:             PMT:                              FV:     End or Begin $4158.98 $4,115.26 $2645.83 $6,707.40
Sara (a 23 year old college graduate) is starting her first career.  She met with a financial planner and has determined that she wants $1,000,000 when she retires at the age of 63.  She has found an annuity that pays 4.25%, compounded quarterly. What will she need to save each month, if a) Sara begins saving now?               N:                           P/Y:             I%:                         C/Y:             PMT:                              FV:     End or Begin $1,323.80 $1,376.59 $794.74 $1,000,000
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