A certain investment is subject to continuous compounding. The value of the investment after t years is given by V = 7000e" 0.05t dollars. (a) Make a graph of the value of the investment over the...


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A certain investment is subject to continuous compounding. The value of the investment after t years is given by<br>V = 7000e

Extracted text: A certain investment is subject to continuous compounding. The value of the investment after t years is given by V = 7000e" 0.05t dollars. (a) Make a graph of the value of the investment over the first 20 years. 20 000 20 000 15 000 15 000- 10 000- 10000- 5000 5000 10 15 20 5 10 15 20 20 000 20 000 15 000 15 000 10 000 1000아 5000 5000 5 10 15 20 10 15 20 (b) Is the graph concave up or concave dovwn? concave up O concave down Explain in practical terms what the concavity means. The value of the investment is decreasing at an increasing rate, so it shrinks more rapidly in later years than in earlier years. The value of the investment is increasing at an increasing rate, so it grows more rapidly in later years than in earlier years. The value of the investment is decreasing at a decreasing rate, so it shrinks less rapidly in later years than in earlier years. O The value of the investment is increasing at a decreasing rate, so it grows less rapidly in later years than in earlier years. O The value of the investment is increasing at a constant rate, so it grows at the same rate in later years as it does in earlier years.

Jun 05, 2022
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