Your task is to carefully present this solution in the context of a detailed explanation of your...

Question

Your task is to carefully present this solution in the context of a detailed explanation of your work. Your explanation should be directed to a Math 135 student who has been challenged by this problem and does not understand the setup or the mathematics of your solution. You will soon surmise that you will be applying some of the material from section 5.2 in our text. In part (a), you will need to use both equations (5) and (6) from that section. A portion of your presentation should be an explanation of why equation (5) is valid, i.e., you should include an explanation of why the Riemann sum ? ? ? ? ? n i kt i R t e t i 1 approximates the accumulated future value of Sam’s investments in the case where R(t) is constant and leads to equation (5) (hint: see the discussion on pp. 481 and 482). Equation (6) is valid in this case in part (a) where R(t) is constant (include details), but in fact, is not valid in the case where R(t) is not constant, as in the case of part (b). In this setting, you will need the result that

Document Preview:

Math 135 April 22, 2013 Writing Assignment 2 The central focus of this writing assignment is solving and presenting the solution of the following integration application problem: Sam is a 22 year old CSUF finance major who recently graduated and was just hired by a prestigious insurance company. Sam is thinking ahead and plans to invest part of his weekly wage into his personal investment account. (a) If the amount that he invests is constant and if Sam wants his account to be worth $1,000,000 when he is 69 years old, how much should he invest each week? Assume that the account will earn 6% annual interest compounded continuously and that Sam’s investment will go into the account as a continuous money flow. (b) After obtaining the result from part (a), Sam realizes that because of future raises and promotions, he will be able to increase his weekly investments in his investment account over time. He estimates that until he reaches age 69, he can th invest R(t) = 4000 + 200t dollars into the same account during the t year from now; e.g. when Sam is 26, he will be investing at a rate of 4000 + 200·4 = 4800 dollars per year and when he is 36, that rate will be 4000 + 200·14 = 6800 dollars per year. Assuming a continuous money flow, how much will Sam’s account be worth at age 69? Your task is to carefully present this solution in the context of a detailed explanation of your work. Your explanation should be directed to a Math 135 student who has been challenged by this problem and does not understand the setup or the mathematics of your solution. You will soon surmise that you will be applying some of the material from section 5.2 in our text. In part (a), you will need to use both equations (5) and (6) from that section. A portion of your presentation should be an explanation of why equation (5) is valid, i.e., you should include an explanation of why the Riemann sum n kt i ?? approximates the...

005_7azo-ot5xwsmi.pdf

Robert · Accepted Answer

Solution a) 
The solution for this numerical can be understand from the perspective that the investment 
done by Sam is continuous in nature which is described by a function R(t) which represents 
the flow rate in dollars per year. Note that the rate depends on time ; t;

Your task is to carefully present this solution in the context of a detailed explanation of your work. Your explanation should be directed to a Math 135 student who has been challenged by this problem...

Answer To: Your task is to carefully present this solution in the context of a detailed explanation of your...

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment