If $100 Is Invested at a Rate of 5% Compounded

question 9

Essay

If $100 is invested at a rate of 5% compounded continuously,the amount in the account is given by:
If the same principal is invested at an account earning 5% compounded semiannually,the amount is given by:
Consider the difference in these two investments by graphing both functions on your graphing calculator and looking at the years 5 through 7.(Use the window
×
.)What do you notice about the two graphs?

Understand the role of elasticity in determining market reactions to taxes and price controls.

Examine the specific effects of certain taxes, like luxury taxes and FICA, on market participants.

Discern the relationship between market elasticity and the size of the market after a tax imposition.

Interpret graphical representations of market situations involving government-imposed price controls.

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Definitions:

Cultures

The shared values, traditions, norms, customs, arts, history, folklore, and institutions of a group of people.

Power

The ability or capacity to direct or influence the behavior of others or the course of events.

Value System

A set of consistent ethics, principles, and morals that guide an individual's or group's behavior and decisions.

Perpetuate

To make something continue indefinitely; to cause to last or to be remembered or celebrated for a long time.