You plan to invest in an account which pays 6% compounded continuously. If the investment period is for 6 years, then A(P) = P e 0.06 • 6 - Pe gives the total balance of P dollars. 0.36 Find a formula for A'(P). a. Find and interpret A'(5000). b. c. Compare the approximation to the actual change. a. A'(P) = (Type an exact answer in terms of e.)

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
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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You plan to invest in an account which pays 6% compounded continuously.
If the investment period is for 6 years, then A(P) = P e
0.06 • 6 - Pe
gives the total balance of P dollars.
0.36
Find a formula for A'(P).
a.
Find and interpret A'(5000).
b.
c. Compare the approximation to the actual change.
a. A'(P) =
(Type an exact answer in terms of e.)
Transcribed Image Text:You plan to invest in an account which pays 6% compounded continuously. If the investment period is for 6 years, then A(P) = P e 0.06 • 6 - Pe gives the total balance of P dollars. 0.36 Find a formula for A'(P). a. Find and interpret A'(5000). b. c. Compare the approximation to the actual change. a. A'(P) = (Type an exact answer in terms of e.)
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