If a tree's value (v)is growing according to the equation
With an annual interest rate of 5 percent,the tree should be harvested when t =:

Question

If a tree's value (v)is growing according to the equation 
With an annual interest rate of 5 percent,the tree should be harvested when t =:

Quizplus · Accepted Answer

The equation given can be rewritten as:
v = 11e^(0.05t)

To find the optimal time to harvest the tree, we need to maximize the value of v. Taking the derivative of v with respect to t and setting it equal to zero, we get:

dv/dt = 0.55e^(0.05t) = 0

Solving for t, we get t = 13.27 (rounded to two decimal places).

Since t represents the number of years, the closest answer choice is 10 years (choice B). Therefore, we should harvest the tree after 10 years.

If a Tree's Value (V)is Growing According to the Equation