Suppose that ftQoatQo1rt with f3 782and f8180 Find the follo
Suppose that f(t)=Qoa^t=Qo(1+r)^t with f(3)= 78.2and f(8)=180. Find the following:
(a) a=
(b) r=
(Give both answers to at least 5 decimal places.)
(a) a=
(b) r=
(Give both answers to at least 5 decimal places.)
Solution
Given
f(t)=Qoat=Qo(1+r)t
f(3)= 78.2and f(8)=180
at= (1+r)t
a = 1+r --- (1)
at t=3
78.2 = Qo a3 ----- (2)
at t=8
180 = Qo a8 --------(3)
(3 ) / ( 2) gives,
a5 = 180/78.2
a)a = 0.84642
b)r= -0.153578 from (1)
