Steve has $25,000 to invest and wishes to earn an overall annual rate of return of 8%. His financial advisor recommends that he
invest some of the money in a 5-year CD paying 4% per annum and the rest in a corporate bond paying 9% per annum. How much should Steve place in each investment in order to achieve his goal?
If you can solve this, can you please show your work and explain what I need to plug in where, and what equation I need to use? This is so confusing.
If you can solve this, can you please show your work and explain what I need to plug in where, and what equation I need to use? This is so confusing.
1 answer:
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The nth taylor polynomial for the given function is
P₄(x) = ln5 + 1/5 (x-5) - 1/25*2! (x-5)² + 2/125*3! (x-5)³ - 6/625*4! (x - 5)⁴
Given:
f(x) = ln(x)
n = 4
c = 3
nth Taylor polynomial for the function, centered at c
The Taylor series for f(x) = ln x centered at 5 is:
Since, c = 5 so,
Now
f(5) = ln 5
f'(x) = 1/x ⇒ f'(5) = 1/5
f''(x) = -1/x² ⇒ f''(5) = -1/5² = -1/25
f'''(x) = 2/x³ ⇒ f'''(5) = 2/5³ = 2/125
f''''(x) = -6/x⁴ ⇒ f (5) = -6/5⁴ = -6/625
So Taylor polynomial for n = 4 is:
P₄(x) = ln5 + 1/5 (x-5) - 1/25*2! (x-5)² + 2/125*3! (x-5)³ - 6/625*4! (x - 5)⁴
Hence,
The nth taylor polynomial for the given function is
P₄(x) = ln5 + 1/5 (x-5) - 1/25*2! (x-5)² + 2/125*3! (x-5)³ - 6/625*4! (x - 5)⁴
Find out more information about nth taylor polynomial here
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