Determine the time necessary for P dollars to double when it is invested at interest rate r compounded annually, monthly, daily,
1 answer:
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Answer:
- annually: 9.01 years
- monthly: 8.69 years
- daily: 8.67 years
- continuously: 8.66 years
Step-by-step explanation:
For interest compounded in discrete intervals, the formula is ...
A = P(1 +r/n)^(nt)
We want to find t for P=1 and A=2, so we have ...
2 = (1 +r/n)^(nt)
ln(2) = nt·ln(1+r/n)
t = ln(2)/(n·ln(1+r/n))
A table of values for r=0.08 is attached.
__
For continuous compounding, the formula is ...
A = Pe^(rt)
t = ln(A/P)/r = ln(2)/0.08 ≈ 8.66434 . . . . years
__
- annually: 9.01 years
- monthly: 8.69 years
- daily: 8.67 years
- continuously: 8.66 years
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Answer:
- 16 acres of barley only (no acres of wheat)
Step-by-step explanation:
A graph shows cost of planting puts an upper limit on planted area. The lower limit is provided by the requirement to plant at least 15 acres. The vertices of the feasible solution region are ...
(wheat acres, barley acres) = {(0, 15), (0, 16), (3, 12)}
The profit associated with these scenarios will be ...
for (0, 16): 16·350 = 5600
for (3, 12): 3·450 +12·350 = 1350 +4200 = 5550
To maximize profit, the farmer should plant 16 acres of barley.
