Suppose that $50,000 from a retirement account is invested in a large cap stock fund. After 20 yr. the value is $194 .,809 .67 . a. Use the model A = P e r t to determine the average rate of return under continuous compounding. Round to the nearest tenth of a percent. b. How long will it take the investment to reach one-quarter million dollars? Round to the nearest tenth of a year.
Suppose that $50,000 from a retirement account is invested in a large cap stock fund. After 20 yr. the value is $194 .,809 .67 . a. Use the model A = P e r t to determine the average rate of return under continuous compounding. Round to the nearest tenth of a percent. b. How long will it take the investment to reach one-quarter million dollars? Round to the nearest tenth of a year.
Solution Summary: The author calculates the average rate of return of an invested amount under continuous compounding by using the model equation A=Pert.
For the following function f and real number a,
a. find the slope of the tangent line mtan
=
f' (a), and
b. find the equation of the tangent line to f at x = a.
f(x)=
2
=
a = 2
x2
a. Slope:
b. Equation of tangent line: y
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