If an IRA is a variable-rate investment for 15 years at rate r percent per year, compounded monthly, then the future value S that accumulates from an initial investment of $500 is S = 500 1 + 0.011180 12 What is the rate of change of S with respect to r and what does it tell us if the interest rate is as follows? (Round your answers to two decimal places.) (a) 6% If we were to increase the rate by 1%, the future value of the investment would increase by about $ (b) 12% If we were to increase the rate by 1%, the future value of the investment would increase by about $
If an IRA is a variable-rate investment for 15 years at rate r percent per year, compounded monthly, then the future value S that accumulates from an initial investment of $500 is S = 500 1 + 0.011180 12 What is the rate of change of S with respect to r and what does it tell us if the interest rate is as follows? (Round your answers to two decimal places.) (a) 6% If we were to increase the rate by 1%, the future value of the investment would increase by about $ (b) 12% If we were to increase the rate by 1%, the future value of the investment would increase by about $
Chapter6: Exponential And Logarithmic Functions
Section6.1: Exponential Functions
Problem 68SE: An investment account with an annual interest rateof 7 was opened with an initial deposit of 4,000...
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