Thursday

March 5, 2015

March 5, 2015

Posted by **Anonymous** on Sunday, April 27, 2008 at 1:48pm.

f(x) = 5000(1.12)^x, where x is measured in years

a) find average value from x = 2 to x = 3

b) find instantaneous value at x = 3

a) f(x) = 5000(1.12)^{5 - 2} = 5000(1.12)^3 = 7024.64

b) f'(x) = (5000(1.12)^3)(ln 1.12) = (7024.64)(0.113) = 796.093

Did I do the questions correctly?

- Calculus -
**Damon**, Sunday, April 27, 2008 at 8:09pmaverage = integral over x from x1 to x2 / (x2-x1)

= 5000 int 1.12^x dx from 2 to 3 over 1

int 1.12^x dx = 1.12^x/ln 1.12

ln 1.12 = .1133

1.12^3 = 1.405

1.12^2 = 1.254

(1.405 - 1.254)/.1133 = 1.333

5000 *1.333 = 6663.72

b

f(3) = 5000*1.12^3 = 7024.64

note in part a it is an exponential not a sequence. The value is increasing constantly (presumably) not in quarterly or yearly jumps as in with compound interest in most banks.

**Answer this Question**

**Related Questions**

MATH - AN INVESTMENT OF $5000 IN THE STOCKMARKET WITH THE VALUE INCREASED BY 13...

Math - Purchased $10,000 in stock, invested $5000 of own money, borrowed ...

College Algebra - Tina invested $30,000 in a stock. In the first year, the stock...

adult education - California Clinics, an investor-owned chain of ambulatory care...

Finance - What is the annual rate of return on an investment in a common stock ...

Finance - Sports Novelties, Inc., has experienced an explosion in demand for its...

investing - How do I find stock on margin rate of return? This is the question: ...

math - A share of stock worth 100 dollars loses 90% of its value. Then, over ...

Math - A share of stock worth 100 dollars loses 90% of its value. Then, over the...

value of common stock - • Emerson Electric common stock that is selling for $80 ...