EBK PRECALCULUS:GRAPHICAL,...-NASTA ED.
10th Edition
ISBN: 9780135795910
Author: Demana
Publisher: PEARSON CO
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Expert Solution & Answer
Chapter 3.6, Problem 73E
Solution
a.
To find: The annual interest rate.
The annual interest rate is 8%.
Given information:
The function describes the present value of a certain annuity, where x is time in months:
Concept used:
The present value PV of an annuity consisting of n equal payments of R dollars earning an interest rate i per period (payment interval) is
Explanation:
The annual interest rate is determined by the term 0.08 i.e., 8%.
b.
To find: The number of payments per year.
There are 12 payments per year.
Given information:
The function describes the present value of a certain annuity, where x is time in months:
Concept used:
The present value PV of an annuity consisting of n equal payments of R dollars earning an interest rate i per period (payment interval) is
Explanation:
Here, in the given equation “12” determines the number of payments per year.
c.
To find: The amount of each payment.
The amount of each payment is $200.
Given information:
The function describes the present value of a certain annuity, where x is time in months:
Concept used:
The present value PV of an annuity consisting of n equal payments of R dollars earning an interest rate i per period (payment interval) is
Explanation:
On comparing the formula,
i.e., The amount of each payment is $200.
d.
To compute: The present value of the annuity paying $200 monthly after 20 years.
The present value of the annuity is $23,910.86.
Given information:
The function describes the present value of a certain annuity, where x is time in months:
Concept used:
The present value PV of an annuity consisting of n equal payments of R dollars earning an interest rate i per period (payment interval) is
Explanation:
Substitute
The present value of the annuity paying $200 monthly after 20 years is $23,910.86.
e.
To graph: The present value function for x in the interval 0 to 20 years.
The graph of the present value function for x in the interval 0 to 20 years is shown.
Given information:
The function describes the present value of a certain annuity, where x is time in months:
Concept used:
The present value PV of an annuity consisting of n equal payments of R dollars earning an interest rate i per period (payment interval) is
Explanation:
By using graphing calculator, plot the given expression.
f.
To explain: The amount $23,910.86 is much less than the total of all 240 monthly payments of $200, which is $4800.
$23,910.86 is the present value of the annuity paying $200 monthly after 20 years.
Its future value will be much higher than $48,000.
$23,910.86 as present value would be a better option for now.
Given information:
The function describes the present value of a certain annuity, where x is time in months:
Concept used:
The present value PV of an annuity consisting of n equal payments of R dollars earning an interest rate i per period (payment interval) is
Explanation:
$23,910.86 is the present value of the annuity paying $200 monthly after 20 years.
Its future value will be much higher than $48,000.
Thus, $23,910.86 as present value would be a better option for now.
Chapter 3 Solutions
EBK PRECALCULUS:GRAPHICAL,...-NASTA ED.
Ch. 3.1 - Prob. 1QRCh. 3.1 - Prob. 2QRCh. 3.1 - Prob. 3QRCh. 3.1 - Prob. 4QRCh. 3.1 - Prob. 5QRCh. 3.1 - Prob. 6QRCh. 3.1 - Prob. 7QRCh. 3.1 - Prob. 8QRCh. 3.1 - Prob. 9QRCh. 3.1 - Prob. 10QR
Ch. 3.1 - Prob. 1ECh. 3.1 - Prob. 2ECh. 3.1 - Prob. 3ECh. 3.1 - Prob. 4ECh. 3.1 - Prob. 5ECh. 3.1 - Prob. 6ECh. 3.1 - Prob. 7ECh. 3.1 - Prob. 8ECh. 3.1 - Prob. 9ECh. 3.1 - Prob. 10ECh. 3.1 - Prob. 11ECh. 3.1 - Prob. 12ECh. 3.1 - Prob. 13ECh. 3.1 - Prob. 14ECh. 3.1 - Prob. 15ECh. 3.1 - Prob. 16ECh. 3.1 - Prob. 17ECh. 3.1 - Prob. 18ECh. 3.1 - Prob. 19ECh. 3.1 - Prob. 20ECh. 3.1 - Prob. 21ECh. 3.1 - Prob. 22ECh. 3.1 - Prob. 23ECh. 3.1 - Prob. 24ECh. 3.1 - Prob. 25ECh. 3.1 - Prob. 26ECh. 3.1 - Prob. 27ECh. 3.1 - Prob. 28ECh. 3.1 - Prob. 29ECh. 3.1 - Prob. 30ECh. 3.1 - Prob. 31ECh. 3.1 - Prob. 32ECh. 3.1 - Prob. 33ECh. 3.1 - Prob. 34ECh. 3.1 - Prob. 35ECh. 3.1 - Prob. 36ECh. 3.1 - Prob. 37ECh. 3.1 - Prob. 38ECh. 3.1 - Prob. 39ECh. 3.1 - Prob. 40ECh. 3.1 - Prob. 41ECh. 3.1 - Prob. 42ECh. 3.1 - Prob. 43ECh. 3.1 - Prob. 44ECh. 3.1 - Prob. 45ECh. 3.1 - Prob. 46ECh. 3.1 - Prob. 47ECh. 3.1 - Prob. 48ECh. 3.1 - Prob. 49ECh. 3.1 - Prob. 50ECh. 3.1 - Prob. 51ECh. 3.1 - Prob. 52ECh. 3.1 - Prob. 53ECh. 3.1 - 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Prob. 28ECh. 3.4 - Prob. 29ECh. 3.4 - Prob. 30ECh. 3.4 - Prob. 31ECh. 3.4 - Prob. 32ECh. 3.4 - Prob. 33ECh. 3.4 - Prob. 34ECh. 3.4 - Prob. 35ECh. 3.4 - Prob. 36ECh. 3.4 - Prob. 37ECh. 3.4 - Prob. 38ECh. 3.4 - Prob. 39ECh. 3.4 - Prob. 40ECh. 3.4 - Prob. 41ECh. 3.4 - Prob. 42ECh. 3.4 - Prob. 43ECh. 3.4 - Prob. 44ECh. 3.4 - Prob. 45ECh. 3.4 - Prob. 46ECh. 3.4 - Prob. 47ECh. 3.4 - Prob. 48ECh. 3.4 - Prob. 49ECh. 3.4 - Prob. 50ECh. 3.4 - Prob. 51ECh. 3.4 - Prob. 52ECh. 3.4 - Prob. 53ECh. 3.4 - Prob. 54ECh. 3.4 - Prob. 55ECh. 3.4 - Prob. 56ECh. 3.4 - Prob. 57ECh. 3.4 - Prob. 58ECh. 3.4 - Prob. 59ECh. 3.4 - Prob. 60ECh. 3.4 - Prob. 61ECh. 3.4 - Prob. 62ECh. 3.4 - Prob. 63ECh. 3.4 - Prob. 64ECh. 3.4 - Prob. 65ECh. 3.4 - Prob. 66ECh. 3.4 - Prob. 67ECh. 3.4 - Prob. 68ECh. 3.4 - Prob. 69ECh. 3.4 - Prob. 70ECh. 3.4 - Prob. 71ECh. 3.4 - Prob. 72ECh. 3.4 - Prob. 73ECh. 3.5 - Prob. 1QRCh. 3.5 - Prob. 2QRCh. 3.5 - Prob. 3QRCh. 3.5 - Prob. 4QRCh. 3.5 - Prob. 5QRCh. 3.5 - Prob. 6QRCh. 3.5 - Prob. 7QRCh. 3.5 - Prob. 8QRCh. 3.5 - Prob. 9QRCh. 3.5 - Prob. 10QRCh. 3.5 - Prob. 1ECh. 3.5 - Prob. 2ECh. 3.5 - Prob. 3ECh. 3.5 - Prob. 4ECh. 3.5 - Prob. 5ECh. 3.5 - Prob. 6ECh. 3.5 - Prob. 7ECh. 3.5 - Prob. 8ECh. 3.5 - Prob. 9ECh. 3.5 - Prob. 10ECh. 3.5 - Prob. 11ECh. 3.5 - Prob. 12ECh. 3.5 - Prob. 13ECh. 3.5 - Prob. 14ECh. 3.5 - Prob. 15ECh. 3.5 - Prob. 16ECh. 3.5 - Prob. 17ECh. 3.5 - Prob. 18ECh. 3.5 - Prob. 19ECh. 3.5 - Prob. 20ECh. 3.5 - Prob. 21ECh. 3.5 - Prob. 22ECh. 3.5 - Prob. 23ECh. 3.5 - Prob. 24ECh. 3.5 - Prob. 25ECh. 3.5 - Prob. 26ECh. 3.5 - Prob. 27ECh. 3.5 - Prob. 28ECh. 3.5 - Prob. 29ECh. 3.5 - Prob. 30ECh. 3.5 - Prob. 31ECh. 3.5 - Prob. 32ECh. 3.5 - Prob. 33ECh. 3.5 - Prob. 34ECh. 3.5 - Prob. 35ECh. 3.5 - Prob. 36ECh. 3.5 - Prob. 37ECh. 3.5 - Prob. 38ECh. 3.5 - Prob. 39ECh. 3.5 - Prob. 40ECh. 3.5 - Prob. 41ECh. 3.5 - Prob. 42ECh. 3.5 - Prob. 43ECh. 3.5 - Prob. 44ECh. 3.5 - Prob. 45ECh. 3.5 - Prob. 46ECh. 3.5 - Prob. 47ECh. 3.5 - Prob. 48ECh. 3.5 - Prob. 49ECh. 3.5 - Prob. 50ECh. 3.5 - Prob. 51ECh. 3.5 - Prob. 52ECh. 3.5 - Prob. 53ECh. 3.5 - Prob. 54ECh. 3.5 - Prob. 55ECh. 3.5 - Prob. 56ECh. 3.5 - Prob. 57ECh. 3.5 - Prob. 58ECh. 3.5 - Prob. 59ECh. 3.5 - Prob. 60ECh. 3.5 - Prob. 61ECh. 3.5 - Prob. 62ECh. 3.5 - Prob. 63ECh. 3.5 - Prob. 64ECh. 3.5 - Prob. 65ECh. 3.5 - Prob. 66ECh. 3.5 - Prob. 67ECh. 3.5 - Prob. 68ECh. 3.5 - Prob. 69ECh. 3.5 - Prob. 70ECh. 3.5 - Prob. 71ECh. 3.5 - Prob. 72ECh. 3.5 - Prob. 73ECh. 3.5 - Prob. 74ECh. 3.5 - Prob. 75ECh. 3.5 - Prob. 76ECh. 3.5 - Prob. 77ECh. 3.5 - Prob. 78ECh. 3.5 - Prob. 79ECh. 3.6 - Prob. 1QRCh. 3.6 - Prob. 2QRCh. 3.6 - Prob. 3QRCh. 3.6 - Prob. 4QRCh. 3.6 - Prob. 5QRCh. 3.6 - Prob. 6QRCh. 3.6 - Prob. 7QRCh. 3.6 - Prob. 8QRCh. 3.6 - Prob. 9QRCh. 3.6 - Prob. 10QRCh. 3.6 - Prob. 1ECh. 3.6 - Prob. 2ECh. 3.6 - Prob. 3ECh. 3.6 - Prob. 4ECh. 3.6 - Prob. 5ECh. 3.6 - Prob. 6ECh. 3.6 - Prob. 7ECh. 3.6 - Prob. 8ECh. 3.6 - Prob. 9ECh. 3.6 - Prob. 10ECh. 3.6 - Prob. 11ECh. 3.6 - Prob. 12ECh. 3.6 - Prob. 13ECh. 3.6 - Prob. 14ECh. 3.6 - Prob. 15ECh. 3.6 - Prob. 16ECh. 3.6 - Prob. 17ECh. 3.6 - Prob. 18ECh. 3.6 - Prob. 19ECh. 3.6 - Prob. 20ECh. 3.6 - Prob. 21ECh. 3.6 - Prob. 22ECh. 3.6 - Prob. 23ECh. 3.6 - Prob. 24ECh. 3.6 - Prob. 25ECh. 3.6 - Prob. 26ECh. 3.6 - Prob. 27ECh. 3.6 - Prob. 28ECh. 3.6 - Prob. 29ECh. 3.6 - Prob. 30ECh. 3.6 - Prob. 31ECh. 3.6 - Prob. 32ECh. 3.6 - Prob. 33ECh. 3.6 - Prob. 34ECh. 3.6 - Prob. 35ECh. 3.6 - Prob. 36ECh. 3.6 - Prob. 37ECh. 3.6 - Prob. 38ECh. 3.6 - Prob. 39ECh. 3.6 - Prob. 40ECh. 3.6 - Prob. 41ECh. 3.6 - Prob. 42ECh. 3.6 - Prob. 43ECh. 3.6 - Prob. 44ECh. 3.6 - Prob. 45ECh. 3.6 - Prob. 46ECh. 3.6 - Prob. 47ECh. 3.6 - Prob. 48ECh. 3.6 - Prob. 49ECh. 3.6 - Prob. 50ECh. 3.6 - Prob. 51ECh. 3.6 - Prob. 52ECh. 3.6 - Prob. 53ECh. 3.6 - Prob. 54ECh. 3.6 - Prob. 55ECh. 3.6 - Prob. 56ECh. 3.6 - Prob. 57ECh. 3.6 - Prob. 58ECh. 3.6 - Prob. 59ECh. 3.6 - Prob. 60ECh. 3.6 - Prob. 61ECh. 3.6 - Prob. 62ECh. 3.6 - Prob. 63ECh. 3.6 - Prob. 64ECh. 3.6 - Prob. 65ECh. 3.6 - Prob. 66ECh. 3.6 - Prob. 67ECh. 3.6 - Prob. 68ECh. 3.6 - Prob. 69ECh. 3.6 - 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Calculus: Early TranscendentalsCalculusISBN:9781319050740Author:Jon Rogawski, Colin Adams, Robert FranzosaPublisher:W. H. Freeman
Calculus: Early Transcendental FunctionsCalculusISBN:9781337552516Author:Ron Larson, Bruce H. EdwardsPublisher:Cengage Learning
Calculus: Early Transcendentals
Calculus
ISBN:9781285741550
Author:James Stewart
Publisher:Cengage Learning
Thomas' Calculus (14th Edition)
Calculus
ISBN:9780134438986
Author:Joel R. Hass, Christopher E. Heil, Maurice D. Weir
Publisher:PEARSON
Calculus: Early Transcendentals (3rd Edition)
Calculus
ISBN:9780134763644
Author:William L. Briggs, Lyle Cochran, Bernard Gillett, Eric Schulz
Publisher:PEARSON
Calculus: Early Transcendentals
Calculus
ISBN:9781319050740
Author:Jon Rogawski, Colin Adams, Robert Franzosa
Publisher:W. H. Freeman
Calculus: Early Transcendental Functions
Calculus
ISBN:9781337552516
Author:Ron Larson, Bruce H. Edwards
Publisher:Cengage Learning