Concept explainers
a.
To find out the total amount for the given values of the principal, rate of interest and time compounded annually.
a.
Explanation of Solution
Given Information:
The given values are-
Calculation:
Since dollars is invested at an annual rate of compounded continuously for years
Therefore, the formula for the amount after years is given by
......(1)
Consider the following values
Substitute these values in the above formula
When the invested amount is doubled, then
Substitute these values in the (1)
b.
To find out the amount if the interest rate is doubled.
b.
Explanation of Solution
When the interest rate is doubled, then
Substitute these values in the (1)
c.
To find out amount if the number of year is doubled.
c.
Explanation of Solution
When the number of year is doubled, then
Substitute these values in the (1)
Hence, from the above the three parts, note that ‘doubling the invested amount’ gives the highest value of investment
Chapter 3 Solutions
Precalculus with Limits
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