2900 is deposited in an account with an interest rate of r p

$2900 is deposited in an account with an interest rate of r% per year, compounded monthly. At the end of 8 yrs, the balance in the account is given by A= 2900(1 + r/1200)^96. Find the rate of change of A with respect to r when r = 8. Round answer to the nearest hundredth, if necessary.

A= 2900(1 + r/1200)⁹⁶

Hence rate of change of A with respect to r = dA/dr =2900*96*(1+r/1200)⁹⁵ * (1/1200)
= 232 * (1+r/1200)⁹⁵

Now as asked in question; dA/dr when r = 8 = 232 * (1+8/1200)⁹⁵ = 436.142

$2900 is deposited in an account with an interest rate of r% per year, compounded monthly. At the end of 8 yrs, the balance in the account is given by A= 2900(1

2900 is deposited in an account with an interest rate of r p

Solution

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