Explanation Given information: Investing $ 1000 at an annual interest rate of r %, compounded annually for 10 years gives you a balance of $ B, where B = g ( r ). Calculation: P = $1000 Rate = r % t = 10 years Final amount = $ B By continuous interest formula, A = P e r t B ( 10 ) = 1000 e 10 r By given notation g ( To determine (b) Give a financial interpretation of the statement: g ′ ( 2 ) = 122 . What are the units of g ′ ( 2 ) ?

6th Edition

ISBN: 9781119399353

Author: DA

Publisher: JOHN WILEY+SONS,INC.-CONSIGNMENT

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Differential Equations

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Chapter 2.3, Problem 20P

To determine

(a)

Give a financial interpretation of the statement: g(2)≈1221.

To determine

(b)

Give a financial interpretation of the statement: g′(2)=122. What are the units of g′(2) ?

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Chapter 2.3, Problem 19P

Chapter 2.3, Problem 21P

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Chapter 2 Solutions

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(a) Give a financial interpretation of the statement: g ( 2 ) ≈ 1221 .

Solution Summary: The author explains the financial interpretation of the statement: g(2)approx 1221. It represents the amount in 2 years at a rate of 9.98%.

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(a)

Give a financial interpretation of the statement: g(2)≈1221.

(b)

Give a financial interpretation of the statement: g′(2)=122. What are the units of g′(2) ?

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Chapter 2 Solutions

(a) Give a financial interpretation of the statement: g ( 2 ) ≈ 1221 .

Solution Summary: The author explains the financial interpretation of the statement: g(2)approx 1221. It represents the amount in 2 years at a rate of 9.98%.

Concept explainers

Videos

(a) Give a financial interpretation of the statement: g(2)≈1221.

(b) Give a financial interpretation of the statement: g′(2)=122. What are the units of g′(2) ?

Want to see the full answer?

Chapter 2 Solutions

(a)

Give a financial interpretation of the statement: g(2)≈1221.

(b)

Give a financial interpretation of the statement: g′(2)=122. What are the units of g′(2) ?