The value of an investment of $1000 earning 7% compounded annually is V(I, R) = 1000 1 + 0.07(1 − R) 1 + I 10 where I is the annual rate of inflation and R is the tax rate for the person making the investment. Calculate VI(0.03, 0.28) and VR(0.03, 0.28). (Round your answers to two decimal places.) VI(0.03, 0.28) = VR(0.03, 0.28) =

Explanation:

We will first state the equation.

Where:

I = annual rate of inflation;

R = the tax rate for the person making the investment.

We first determine the partial derivatives with respect to I and R.

VI(0.03, 0.28)

=-11812.39

=-810.81

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.