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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![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 $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe4c08af9-5d4b-4492-bc1d-f80f84af0110%2Fb69239f6-03ed-4155-b1c2-415e8d4d7e8a%2Frhnpm7_processed.png&w=3840&q=75)
Transcribed Image Text: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 $
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