Concept explainers
The Rule of 72 This is a continuation of Exercise 14. Financial advisors sometimes use a rule of thumb known as Rule of 72 to get a rough estimate of the time it takes for an investment to double in value. For an investment that is compounded yearly at an interest rate of
For the remainder of this exercise, we will consider an investment that is compounded yearly at an interest rate of
a. According to the Rule 72, how long will it take the investment to double in value?
Parts b and c of this exercise will check to see how accurate this estimate is for this particular case.
b. Using the answer you got from part a of this exercise, calculate the future value interest factor (as defined in Exercise 14). Is it exactly the same as your answer to the part a of Exercise 14?
c. If your initial investment was
Future Value Business and finance texts refer to the value of an investment at a future time as its future value. If an investment of P dollars is compounded yearly at an interest rate of
In this formula,
Financial officers normally calculate this (or look it up in a table)
a. What future value interest factor will make an investment double?
b. Say you have an investment that is compounded yearly at a rate of
Find the future value interest factor for a 7-year investment.
c. Use the results from part b to calculate the 7-year future value if your initial investment is
Want to see the full answer?
Check out a sample textbook solutionChapter P Solutions
FUNCTIONS+CHANGE -WEBASSIGN
- I need help solving the equation 3x+5=8arrow_forwardWhat is the domain, range, increasing intervals (theres 3), decreasing intervals, roots, y-intercepts, end behavior (approaches four times), leading coffiencent status (is it negative, positivie?) the degress status (zero, undifined etc ), the absolute max, is there a absolute minimum, relative minimum, relative maximum, the root is that has a multiplicity of 2, the multiplicity of 3.arrow_forwardWhat is the vertex, axis of symmerty, all of the solutions, all of the end behaviors, the increasing interval, the decreasing interval, describe all of the transformations that have occurred EXAMPLE Vertical shrink/compression (wider). or Vertical translation down, the domain and range of this graph EXAMPLE Domain: x ≤ -1 Range: y ≥ -4.arrow_forward
- 4. Select all of the solutions for x²+x - 12 = 0? A. -12 B. -4 C. -3 D. 3 E 4 F 12 4 of 10arrow_forward2. Select all of the polynomials with the degree of 7. A. h(x) = (4x + 2)³(x − 7)(3x + 1)4 B h(x) = (x + 7)³(2x + 1)^(6x − 5)² ☐ Ch(x)=(3x² + 9)(x + 4)(8x + 2)ª h(x) = (x + 6)²(9x + 2) (x − 3) h(x)=(-x-7)² (x + 8)²(7x + 4)³ Scroll down to see more 2 of 10arrow_forward1. If all of the zeros for a polynomial are included in the graph, which polynomial could the graph represent? 100 -6 -2 0 2 100 200arrow_forward
- 3. Select the polynomial that matches the description given: Zero at 4 with multiplicity 3 Zero at −1 with multiplicity 2 Zero at -10 with multiplicity 1 Zero at 5 with multiplicity 5 ○ A. P(x) = (x − 4)³(x + 1)²(x + 10)(x — 5)³ B - P(x) = (x + 4)³(x − 1)²(x − 10)(x + 5)³ ○ ° P(x) = (1 − 3)'(x + 2)(x + 1)"'" (x — 5)³ 51 P(r) = (x-4)³(x − 1)(x + 10)(x − 5 3 of 10arrow_forwardMatch the equation, graph, and description of transformation. Horizontal translation 1 unit right; vertical translation 1 unit up; vertical shrink of 1/2; reflection across the x axis Horizontal translation 1 unit left; vertical translation 1 unit down; vertical stretch of 2 Horizontal translation 2 units right; reflection across the x-axis Vertical translation 1 unit up; vertical stretch of 2; reflection across the x-axis Reflection across the x - axis; vertical translation 2 units down Horizontal translation 2 units left Horizontal translation 2 units right Vertical translation 1 unit down; vertical shrink of 1/2; reflection across the x-axis Vertical translation 2 units down Horizontal translation 1 unit left; vertical translation 2 units up; vertical stretch of 2; reflection across the x - axis f(x) = - =-½ ½ (x − 1)²+1 f(x) = x²-2 f(x) = -2(x+1)²+2 f(x)=2(x+1)²-1 f(x)=-(x-2)² f(x)=(x-2)² f(x) = f(x) = -2x²+1 f(x) = -x²-2 f(x) = (x+2)²arrow_forwardWhat is the vertex, increasing interval, decreasing interval, domain, range, root/solution/zero, and the end behavior?arrow_forward
- The augmented matrix of a linear system has been reduced by row operations to the form shown. Continue the appropriate row operations and describe the solution set of the original system. 1 -1 0 1 -2 00-4 0-6 0 0 1 - 3 3 0 001 4arrow_forwardSolve the system. X1 - 3x3 = 10 4x1 + 2x2 + 3x3 = 22 ×2 + 4x3 = -2arrow_forwardUse the quadratic formula to find the zeros of the quadratic equation. Y=3x^2+48x+180arrow_forward
- Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw HillHolt Mcdougal Larson Pre-algebra: Student Edition...AlgebraISBN:9780547587776Author:HOLT MCDOUGALPublisher:HOLT MCDOUGALAlgebra & Trigonometry with Analytic GeometryAlgebraISBN:9781133382119Author:SwokowskiPublisher:Cengage
- College Algebra (MindTap Course List)AlgebraISBN:9781305652231Author:R. David Gustafson, Jeff HughesPublisher:Cengage Learning