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Get Full Access to Calculus: Early Transcendentals - 2 Edition - Chapter 2.6 - Problem 57
Get Full Access to Calculus: Early Transcendentals - 2 Edition - Chapter 2.6 - Problem 57

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# Intermediate Value Theorem and interest rates Suppose

ISBN: 9780321947345 167

## Solution for problem 57 Chapter 2.6

Calculus: Early Transcendentals | 2nd Edition

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Problem 57

Intermediate Value Theorem and interest rates Suppose \$5000 is invested in a savings account for 10 years (120 months), with an annual interest rate of r, compounded monthly. The amount of money in the account after 10 years is A1r2 = 500011 + r>122120. a. Use the Intermediate Value Theorem to show there is a value of r in (0, 0.08)an interest rate between 0% and 8%that allows you to reach your savings goal of \$7000 in 10 years. b. Use a graph to illustrate your explanation in part (a); then approximate the interest rate required to reach your goal.

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