MAZOON COLLEGE

Assignment

Instructor Name Adil Ali Khan

Course Code Maths-12
Course Name Business Calculus
Student ID
Student Name
1. Assignment Task

Question No 1
a) Which is better, an investment that earns l0% compounded quarterly, one that
earns 9.95% compounded monthly, or one that earns 9.9% compounded
continuously?
Solution
Suppose we are investing for one year
𝑟 𝑚𝑡
𝐴 = 𝑃 (1 + )
𝑚
𝑟 𝑖𝑠 𝑟𝑎𝑡𝑒
A. l0% compounded quarterly,
here 𝑟 = 0.1, , 𝑐𝑜𝑚𝑝𝑜𝑢𝑛𝑑 𝑞𝑢𝑎𝑟𝑡𝑒𝑟𝑙𝑦 𝑚𝑒𝑎𝑛𝑠 𝑚 = 4
𝑟 𝑚𝑡
𝐴 = 𝑃 (1 + )
𝑚
0.1 4𝑡
𝐴 = 𝑃 (1 + )
4
𝐴 = 𝑃(1 + 0.025)4𝑡
𝐴 = 𝑃(1.025)4𝑡 = 𝑃((1.025)4 )𝑡
𝐴 = 𝑃(1.103813)𝑡

B. 9.95% compounded monthly

here 𝑟 = 9.95%, , 𝑐𝑜𝑚𝑝𝑜𝑢𝑛𝑑 𝑞𝑢𝑎𝑟𝑡𝑒𝑟𝑙𝑦 𝑚𝑒𝑎𝑛𝑠 𝑚 = 12
𝑟 𝑚𝑡
𝐴 = 𝑃 (1 + )
𝑚
0.0995 12𝑡
𝐴 = 𝑃 (1 + )
12
𝐴 = 𝑃(1 + 0.008292)12𝑡
𝐴 = 𝑃(1.008292)12𝑡 = 𝑃((1.008292)12 )𝑡
𝐴 = 𝑃(1.10417)𝑡
C. 9.9% compounded continuously
𝐴 = 𝑃𝑒 𝑟𝑡
𝐴 = 𝑃𝑒 0.099𝑡

𝐴 = 𝑃(1.104066)𝑡
𝑛𝑜𝑤 𝑤𝑒 𝑤𝑖𝑙𝑙 𝑐𝑜𝑚𝑝𝑎𝑟𝑒 𝑎𝑏𝑜𝑣𝑒 𝑟𝑒𝑠𝑢𝑙𝑡
Since
(1.103813)𝑡 < (1.104066)𝑡 < (1.10417)𝑡
ℎ𝑒𝑛𝑐𝑒 compound continuously gives us best result

b) The distance in feet of an object from a starting point is given by s(t) = 2t2 - 5t
+ 40 where t is a time in seconds.
Find the average velocity of the object from 4 seconds to 8 seconds.
Solution
𝑆(𝑡) = 2𝑡 2 − 5𝑡 + 40
 𝑑𝑆
𝑣=
𝑑𝑡
𝑑𝑆 𝑑
𝑣== (2𝑡 2 − 5𝑡 + 40)
𝑑𝑡 𝑑𝑡
𝑑𝑆 𝑑 𝑑 𝑑
𝑣= = 2 𝑡 2 − 5 𝑡 + (40)
𝑑𝑡 𝑑𝑡 𝑑𝑡 𝑑𝑡
𝑑𝑆
𝑣= = 4𝑡 − 5
𝑑𝑡
Now average velocity
𝑏
1
𝐴𝑉 = ∫ 𝑣𝑑𝑡
𝑏−𝑎 𝑎

8
1
𝐴𝑉 = ∫ (4𝑡 − 5)𝑑𝑡
8−4 4
1 𝑡2
𝐴𝑉 = (4 − 5𝑡)
4 2
1
𝐴𝑉 = (2𝑡 2 − 5𝑡)
4

𝑏𝑦 𝑎𝑝𝑝𝑙𝑦𝑖𝑛𝑔 𝑙𝑖𝑚𝑖𝑡 𝑜𝑔 𝑖𝑛𝑡𝑒𝑔𝑟𝑎𝑡𝑖𝑜𝑛𝑠

1 5
𝐴𝑉 = (2(82 − (42 ) − (8 − 4)
4 4
1 5
𝐴𝑉 = (64 − 16) − (4)
2 4
1
𝐴𝑉 = (48) − 5
2
𝐴𝑉 = 24 − 5
𝐴𝑉 = 19

Question no 2
a) If f(x) = 9 x2 +2x find all the values of x such that f(x) = 729.
2
𝑓(𝑥) = 9𝑥 +2𝑥
2
9𝑥 +2𝑥 = 729
2
9𝑥 +2𝑥 = 93
𝑥 2 + 2𝑥 − 3 = 0
2
𝑥 + 3𝑥 − 𝑥 − 3 = 0
𝑥(𝑥 + 3) − 1(𝑥 + 3_ = 0
𝑥 + 3 = 0 𝑎𝑛𝑑 𝑥 − 1 = 0

𝑥 = −3 𝑎𝑛𝑑 𝑥 = 1
b) Farhan is about to enter to the college. When he graduated from 8 years from now,
he wants to take a trip to U.S.A that estimates the cost of 10000$. How much he
invests now at the rate of 9% to have enough for the trip if interest is compounded
annually.

a. Quarterly
𝑟 𝑚𝑡
𝐴 = 𝑃 (1 + )
𝑚
 𝑟 = 0.09
𝑡 = 8 𝑦𝑒𝑎𝑟
𝑞𝑢𝑎𝑟𝑡𝑒𝑟𝑙𝑦 𝑚𝑒𝑎𝑛𝑠 𝑚 = 4
0.09 4.8
10000 = 𝑃 (1 + )
4
10000 = 𝑃(1 + 0.025)32
10000 = 𝑃(1.025)32
10000
𝑃=
(1.025)32

𝑃 = $5097.58
b. Monthly
𝑟 𝑚𝑡
𝐴 = 𝑃 (1 + )
𝑚
𝑟 = 0.09
𝑡 = 8 𝑦𝑒𝑎𝑟
𝑞𝑢𝑎𝑟𝑡𝑒𝑟𝑙𝑦 𝑚𝑒𝑎𝑛𝑠 𝑚 = 12
0.09 8.12
10000 = 𝑃 (1 + )
12
10000 = 𝑃(1 + 0.0075)96
10000 = 𝑃(1.0075)96
10000
𝑃=
(1.0075)96
𝑃 = $5378.73

c. semi-annually
𝑟 𝑚𝑡
𝐴 = 𝑃 (1 + )
𝑚
𝑟 = 0.09
𝑡 = 8 𝑦𝑒𝑎𝑟
𝑞𝑢𝑎𝑟𝑡𝑒𝑟𝑙𝑦 𝑚𝑒𝑎𝑛𝑠 𝑚 = 2
0.09 8.2
10000 = 𝑃 (1 + )
2
10000 = 𝑃(1 + 0.045)16
10000 = 𝑃(1.045)16
10000
𝑃=
(1.045)16
𝑃 = $4694.14

d. continuously
𝐴 = 𝑃𝑒 𝑟𝑡
10000 = 𝑃𝑒 0.09.8
10000 = 𝑃𝑒 0.72
10000
𝑃 = 0.72
𝑒

𝑃 = $4132.97
Question no 3
Suppose we take a trip from Muscat driving south. Every half-hour we note how far we
Type equation here.have travelled with the following results from first three hours.
Find the average speed between all-time intervals

Distance Travelled

Time in hours 0 0.6 1.1 1.6 2.1 2.6 3.1

Distance in miles 0 62 112 162 210 250 78

Solution
1st interval [0, 0.6]
𝑑𝑖𝑠𝑡𝑎𝑛𝑐𝑒 = 62
𝑡𝑖𝑚𝑒 𝑡𝑎𝑘𝑒𝑛 = 0.6 − 0
𝑑𝑖𝑠𝑡𝑎𝑛𝑐𝑒
𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑠𝑝𝑒𝑒𝑑 =
𝑡𝑖𝑚𝑒
62
𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑠𝑝𝑒𝑒𝑑 =
0.6
𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑠𝑝𝑒𝑒𝑑 = 103.33 𝑚𝑖𝑙𝑒𝑠 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟
2nd interval [0.6, 1.1]
𝑑𝑖𝑠𝑡𝑎𝑛𝑐𝑒 = 112 − 62 = 50
𝑡𝑖𝑚𝑒 𝑡𝑎𝑘𝑒𝑛 = 1.1 − 0.6 = 0.5
𝑑𝑖𝑠𝑡𝑎𝑛𝑐𝑒
𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑠𝑝𝑒𝑒𝑑 =
𝑡𝑖𝑚𝑒
50
𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑠𝑝𝑒𝑒𝑑 =
0.5
𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑠𝑝𝑒𝑒𝑑 = 100 𝑚𝑖𝑙𝑒𝑠 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟
3rd interval [ 1.1,1.6]
𝑑𝑖𝑠𝑡𝑎𝑛𝑐𝑒 = 162 − 112 = 50
𝑡𝑖𝑚𝑒 𝑡𝑎𝑘𝑒𝑛 = 1.1 − 0.6 = 0.5
𝑑𝑖𝑠𝑡𝑎𝑛𝑐𝑒
𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑠𝑝𝑒𝑒𝑑 =
𝑡𝑖𝑚𝑒
50
𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑠𝑝𝑒𝑒𝑑 =
0.5
𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑠𝑝𝑒𝑒𝑑 = 100 𝑚𝑖𝑙𝑒𝑠 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟

4th interval [ 1.6,2.1]

𝑑𝑖𝑠𝑡𝑎𝑛𝑐𝑒 = 210 − 162 = 48
𝑡𝑖𝑚𝑒 𝑡𝑎𝑘𝑒𝑛 = 2.1 − 1.6 = 0.5
𝑑𝑖𝑠𝑡𝑎𝑛𝑐𝑒
𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑠𝑝𝑒𝑒𝑑 =
𝑡𝑖𝑚𝑒
48
𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑠𝑝𝑒𝑒𝑑 =
0.5
𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑠𝑝𝑒𝑒𝑑 = 96 𝑚𝑖𝑙𝑒𝑠 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟
 5th interval [ 2.1,2.6]
𝑑𝑖𝑠𝑡𝑎𝑛𝑐𝑒 = 250 − 210 = 40
𝑡𝑖𝑚𝑒 𝑡𝑎𝑘𝑒𝑛 = 2.6 − 2.1 = 0.5
𝑑𝑖𝑠𝑡𝑎𝑛𝑐𝑒
𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑠𝑝𝑒𝑒𝑑 =
𝑡𝑖𝑚𝑒
40
𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑠𝑝𝑒𝑒𝑑 =
0.5
𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑠𝑝𝑒𝑒𝑑 = 80 𝑚𝑖𝑙𝑒𝑠 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟
6th interval [ 2.6,3.1]
𝑑𝑖𝑠𝑡𝑎𝑛𝑐𝑒 = 78 − 250 = −172
𝑡𝑖𝑚𝑒 𝑡𝑎𝑘𝑒𝑛 = 3.1 − 2.6 = 0.5
𝑑𝑖𝑠𝑡𝑎𝑛𝑐𝑒
𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑠𝑝𝑒𝑒𝑑 =
𝑡𝑖𝑚𝑒
−172
𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑠𝑝𝑒𝑒𝑑 =
0.5
𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑠𝑝𝑒𝑒𝑑 = −344 𝑚𝑖𝑙𝑒𝑠 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟

Question No 4
a) Suppose a short run total cost function is given by an equation
TC = 2Q4− 8Q3 +20Q2+150Q+10.
Find the marginal cost and interpret it.
marginal cost is just derivative of total cost with respect to Q
𝑇𝐶 = 2𝑄 4 − 8𝑄 3 + 20𝑄 2 + 150𝑄 + 10
𝑑𝑇𝐶 𝑑
= (2𝑄 4 − 8𝑄 3 + 20𝑄 2 + 150𝑄 + 10)
𝑑𝑄 𝑑𝑄
By power rule of derivative
𝑑𝑥 𝑛
= 𝑛𝑥 𝑛−1
𝑑𝑥
𝑑𝑇𝐶 𝑑 4 𝑑 3 𝑑 2 𝑑 𝑑
= (2 𝑄 −8 𝑄 + 20 𝑄 + 150 𝑄+ 10)
𝑑𝑄 𝑑𝑄 𝑑𝑄 𝑑𝑄 𝑑𝑄 𝑑𝑄
𝑑𝑇𝐶
= 8𝑄 3 − 24𝑄 2 + 40𝑄 + 150
𝑑𝑄
To produce an additional units of output the producer incurs a cost 8𝑄 3 − 24𝑄 2 +
40𝑄 + 150.

b) A smart phone manufacturer knows that the cost of producing x phones is given by
C(x) =8x2+34x+2,500. Calculate the marginal cost and what the relation between total
cost and marginal cost is?

Solution
𝑪(𝒙) = 8𝑥 2 + 34𝑥 + 2500

marginal cost is just derivative of total cost with respect to x

𝑑𝐶 𝑑
= (8𝑥 2 + 34𝑥 + 2500)
𝑑𝑥 𝑑𝑥
𝑑𝐶 𝑑 𝑑 𝑑
= (8 𝑥 2 + 34 𝑥 + 2500)
𝑑𝑥 𝑑𝑥 𝑑𝑥 𝑑𝑥
 𝑑𝐶
= 16𝑥 + 34
𝑑𝑥

Marginal Cost is considered the slope of the total cost, i.e. it defines the rate of change in the
total cost. Thus,

When MC is positive, the TC must be increasing.

When MC is zero, the TC must be constant.

When MC is negative, the TC must be decreasing.