Compounding and Discounting.

Discrete case

Where: V is the return of the investment A is the initial investment r is the rate of interest m is the frequency at which interest is calculated

Compounding and Discounting. Continuous case: m-->

Maxima and Minima. Second derivative test.

Maxima and Minima. First derivative test.

Points of Inflection. Convexity test.

Sketching Gra hs

1. general comments: domain, sign, extremes, zeros,.. 2. first and second derivatives 3. critical values (f'(x)=0) 4. second or first derivative test 5. points of inflection (f''(x)=0) 6. convexit test