Calculus: Early Transcendentals 8th Edition

Published by Cengage Learning
ISBN 10: 1285741552
ISBN 13: 978-1-28574-155-0

Chapter 4 - Section 4.4 - Indeterminate Forms and l''Hospital''s Rule - 4.4 Exercises - Page 313: 79

Answer

$A = A_0~e^{rt}$

Work Step by Step

$A = A_0~(1+\frac{r}{n})^{nt}$ Let $~~y = (1+\frac{r}{n})^{nt}$ $ln~y = ln~(1+\frac{r}{n})^{nt} = (nt)~ln~(1+\frac{r}{n}) = (t)~\frac{ln~(1+\frac{r}{n})}{1/n}$ $\lim\limits_{n \to \infty} ln~y = \lim\limits_{n \to \infty}~(t)~\frac{ln~(1+\frac{r}{n})}{1/n} = t~(\frac{0}{0})$ We can apply L'Hospital's Rule: $\lim\limits_{n \to \infty} ln~y = \lim\limits_{n \to \infty}~(t)~\frac{\frac{-r/n^2}{1+\frac{r}{n}}}{-1/n^2}$ $\lim\limits_{n \to \infty} ln~y = \lim\limits_{n \to \infty}~(t)~\frac{r}{1+\frac{r}{n}}$ $\lim\limits_{n \to \infty}ln~y = (t)~\frac{r}{1+0}$ $\lim\limits_{n \to \infty}ln~y = rt$ $\lim\limits_{n \to \infty}y = e^{rt}$ Therefore: $A = \lim\limits_{n \to \infty}A_0~(1+\frac{r}{n})^{nt} = A_0~e^{rt}$
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