(Solution Library) Investment The table gives the value A(t, r) of an initial investment of $\$ 1000$ after t years in an account whose interest rate r \% is
Question: Investment The table gives the value \(A(t, r)\) of an initial investment of $\$ 1000$ after \(t\) years in an account whose interest rate \(r \%\) is compounded continuously.
c. Find a cross-sectional model for the value of $1000 investment in terms of the interest rate ex- pressed as a percentage, assuming 10 years have elapsed. Compare this equation with the one you found in part 1.
d. Use the model in part c to estimate the rate of change with respect to the interest rate of a $1000 investment after 10 years in an account, paying 7% interest. Interpret the rate of change as an approximate change. Compare these answers with those you found in part b, and reconcile any differences.
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