(a)
To calculate : The annual interest rate.
The annual interest rate is
Given information :
The function
Formula used:
Future value of an annuity is given by:
Calculation :
Consider the function
Compare it with
So, in
Therefore, the annual interest rate is
(b)
To calculate : The number of payments per year.
The number of payments per year is
Given information :
The function
Formula used:
Future value of an annuity is given by:
Calculation :
Consider the function
Compare it with
So, in
Therefore, the number of payments per year is
(c)
To calculate : The amount of each payment.
The amount of each payment is
Given information :
The function
Formula used:
Future value of an annuity is given by:
Calculation :
Consider the function
Compare it with
So, in
Therefore, the amount of each payment is
Chapter 3 Solutions
PRECALCULUS:GRAPHICAL,...-NASTA ED.
- Calculus: Early TranscendentalsCalculusISBN:9781285741550Author:James StewartPublisher:Cengage LearningThomas' Calculus (14th Edition)CalculusISBN:9780134438986Author:Joel R. Hass, Christopher E. Heil, Maurice D. WeirPublisher:PEARSONCalculus: Early Transcendentals (3rd Edition)CalculusISBN:9780134763644Author:William L. Briggs, Lyle Cochran, Bernard Gillett, Eric SchulzPublisher:PEARSON
- Calculus: Early TranscendentalsCalculusISBN:9781319050740Author:Jon Rogawski, Colin Adams, Robert FranzosaPublisher:W. H. FreemanCalculus: Early Transcendental FunctionsCalculusISBN:9781337552516Author:Ron Larson, Bruce H. EdwardsPublisher:Cengage Learning