Question

An amount of $10,000 is deposited in an account with an interest rate ofr percent per year, compounded monthly. At the end of 2 years, the balance in the account is 24 r glven by A 10,000 1+ 1200 Find the rate of change of A with respect to r (written as a percentage) for the interest rates given in parts (a). (b) and (c) below (a) Suppose r 1.5% Then the rate of change of A with respect to r is approximately S per percentage point. (Type an integer or decimal rounded to two decimal places as needed.) (b) Suppose r2.7 % . Then the rate of change of A with respect to r is approximately $per percentage point (Type an integer or decimal rounded to two decimal places as needed.) (c) Suppose r 4.5 %. Then the rate of change of A with respect to r is approximately S places as needed.) per percentage point. (Type an integer or decimal rounded to two decimal

Answer 1

A = 10000 (1+0) Rate of change of a with respect to s'is da date = 10000 x 24 (1+12.00) 24" x E 10000% 24 (1+ itongas h = 200 (14 760) 23 a) 851,5%, HAF? e ty = 20 5.829 com a $205.83 per. Percentage point, b) 852.7% AF? pes 200 (it is the me $ 210.6) per percentage point, 485415%. LA = ? politen 200 (1+ 200 123 SA $ 214.98 fer percentage point