If an IRA is a variable rate investment for 20 years at rate r percent per year, compounded monthly, then the future value S that accumulates from an initial investment of $1000 is What is the rate of change of S with respect to r and what does it tell us if the interest rate is (a) 6 (b) 12 0 01r ...

a S6 2001 0005 239 20032937 65875 b S1 ...

If an IRA is a variable-rate investment for 20 years at rate r percent per year, compounded

Question:

If an IRA is a variable-rate investment for 20 years at rate r percent per year, compounded monthly, then the S that accumulates from an initial investment of $1000 is

What is the rate of change of S with respect to r and what does it tell us if the interest rate is
(a) 6%?
(b) 12%?

Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...