If an IRA is a variable-rate investment for 25 years at rate r percent per year compounded monthly, then the future Jlue S that accumulates from an initial investment of $1500 is S = 1500 [1 0

Business Sep 25, 2020

If an IRA is a variable-rate investment for 25 years at rate r percent per year compounded monthly, then the future Jlue S that accumulates from an initial investment of $1500 is
S = 1500 [1
0.01r1 12
300
What is the rate of change of S with respect to r and what does it tell us if the interest rate is as follows? (Round your answers to two decimal places.) (a) 6% X If we were to increase the rate by 1%, the future value of the investment would increase by about $1
(b) 12%
X
If we were to increase the rate by 1%, the future value of the investment would increase by about $

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