Exam 1

Calculus for Business & Economics, Section 51

Name:

UID No:

Date: Tuesday, March 18, 2008

/50

Score:

1. (5 points) Find all relations specifying a function.

(1) f (3) = 5; f (6) = 5; f (9) = 6; f (12) = 6.
(2) g (3) = 5; g (3) = 6; g (4) = 6; g (4) = 7; g (5) = 8.
(3) h(3) = 0; h(5) = 1; h(7) = 2.
(4) k( 2) = 6; k( 1) = 6; k(0) = 6; k(1) = 6.

Answer. Function: (1), (3) and (4). Not Function: (2)

2. (5 points) Find the domain and range of f (x) = 0:7 x 7 + 5.

Answer. Step 1: y = f (x) = 0:7 x has the domain x  0 and range y  0.

Step 2: y = f (x 7) = 0:7 x 7 has the domain x  7 and range y  0.

p
Step 3: y = f (x 7) + 5 = 0:7 x 7 + 5 has the domain x  7 and range y  5.
3. (5 points) Express the function f (x) = x2
the graph.

6x + 5 in the vertex form and nd the vertex and sketch

Answer. By completing the square, we have

f (x) = x2

6x + 3 2

32 + 5 = (x 3)2

9 + 5 = (x 3)2

4;

which is the vertex form of f (x). It implies the vertex (3; 4) and the graph of f (x) containing the vertex
is as follows:
Graph of f HxL= x2 -6x+5
12
10
8
6
4
2
1

-1

-2
-4

1/4

Calculus for Business & Economics, Section 51

(Continued)

4. (5 points) Given that f is a quadratic function with minimum f (2) = 4, nd the vertex, range, and
x{intercepts.

Answer. A quadratic function f (x) means f (x) has the form f (x) = ax2 + bx + c of which vertex form

is f (x) = a(x h)2 + k with the vertex (h; k).

For a > 0, y = f (x) has the minimum value k at the vertex (h; k) and the range y  k.
For a < 0, y = f (x) has the maximum value k at the vertex (h; k) and the range y  k.
In this problem, the condition \f (x) has the minimum f (2) = 4" implies that f (x) has the vertex (2; 4)
and the range of y = f (x) is y  4. (Please confer the problem #2 above.) Since the graph has the
minimum 4, it does not touch the x{axis and so f (x) does not have any x{intercept.
5. (5 points) Suppose that $2; 000 is deposited in an account. How long (to the next whole year) will it
take the money in the account to reach $6; 000 if it is invested at 12% compounded monthly?

Answer. The (Discretely) Compound Interest Formula says



r mt
A=P 1+
:
m

The problem says \compounded monthly (12 times in a year)" and so we use the formula above.


0:12 12t
6; 000 = 2; 000 1 +
;
12

3 = 1:0112t :

Taking the logarithmic function with base 3 (one can use a logarithmic function with any base), we get
1 = log3 3 = log3 1:0112t = 12t log3 1:01;

t=

1
:
12 log3 1:01

6. (5 points) Find the limit if it exits: xlim

[ 3f (x) + 2g (x)], where xlim
f (x) = 5 and xlim
g (x) = 4.
!1
!1
!1

Answer. By the formula, we get

lim [ 3f (x) + 2g (x)] = 3 xlim
f (x) + 2 xlim
g (x) = 3( 5) + 2(4) = 23:
!1
!1

x!1

2/4

(Continued)

Calculus for Business & Economics, Section 51

7. (5 points) A personal{computer salesperson receives a base salary of $1; 000 per month and a commission
of 5% of all sales over $10; 000 during the month. If the monthly sales are $20; 000 or more, the salesperson
is given an additional $500 bonus. Let E (s) represent the person's earnings during the month as a
function of the monthly sales s.
Sketch the graph of E (s) for 0  s  30; 000 and nd s!lim
E (s).
20;000

Answer. From the graph, s!lim

E (s) does not exist.
20;000
Graph of EHsL
2500
2000
1500
1000

10 000

20 000

30 000

8. (5 points) Find the equation of the tangent line to the graph of f (x) = ln x at x = 1.

Answer. The equation of the tangent line to the graph of f (x) at x = a is

y

f (a) = f 0 (a)(x

a):

1
Since f (x) = ln x has the derivative f 0 (x) = , so we get f 0 (1) = 1 and thus the equation of the tangent
x
line is as follows:
y ln 1 = 1(x 1);
y = x 1:
(Recall ln 1 = 0.)

3/4

Calculus for Business & Economics, Section 51

(Continued)

9. (5 points) An investor bought stock for $20; 000. Five years later, the stock was sold for $30; 000. If
interest is compounded continuously, what annual nominal rate of interest did the original $20; 000
investment earn?

Answer. The Continuously Compounded Interest Formula says

A = P ert :

The problem says \compounded continuously" and so we use the formula above.
30; 000 = 20; 000e5r ;

1:5 = e5r :

Taking the natural logarithmic function (meaning the logarithmic function with base e), we get
ln 1:5 = ln e5r = 5r ln e = 5r;

r=

ln 1:5
:
5

(Recall ln e = 1.)
10. (5 points) Find the derivative of f (x) = (ex + 5) ln(10x4 ) +

3x
.
log5 x

Answer. The Product Rule and Quotient Rule say, respectively,

(fg )0 = f 0 g + fg 0 ;

!
f 0 f 0 g fg 0
=
:
g
g2

Using those formulae, we get

(3x )0 log5 x 3x (log5 x)0
(log5 x)2
1
4 (ex + 5) (3x ln 3) log5 x 3x ( x ln 5 )
= ex ln(10x4 ) +
+
;
x
(log5 x)2

f 0 (x) = (ex + 5)0 ln(10x4 ) + (ex + 5) [ln(10x4 )]0 +

where the following results are used:

ln(10x4 ) = ln 10 + ln x4 = ln 10 + 4 ln x; i:e:;
1
(3x )0 = (ln 3)3x ;
(log5 x)0 =
:
x ln 5

4/4

i0
4
ln(10x4 ) = ;
x

Exam 2 { Solution

Calculus for Business & Economics, Section 51

Name: Solution
UID No: Solution
Date: Thursday, May 15, 2008

Score: 50/50

1. (5 points) Suppose that $8000 is invested at an interest rate of 5:5% per year, compounded continuously.
How long would it take to double the investment?

Solution. The Continuous Compound Interest Formula implies

A = 8000e0:055t :

We look for the time t satisfying

2(8000) = 8000e0:055t ;

2 = e0:055t ;

0:055t = ln 2;

t=

ln 2
0:055

 12:6027:

Therefore, the answer is t  12:6027.

2. (5 points) Find the equation of the tangent line to the graph of f (x) = ex + 2 (x ln x) at x = 1.

Solution. The equation of the tangent line to the graph of f (x) at x = 1 is

y

f (1) = f 0 (1)(x

1):

Since f (1) = e1 + 2 (1 ln 1) = e + 2, so the equation becomes

y

Now we nd f 0 (1):

f 0 (x) = ex + 2 1

(e + 2) = f 0 (1)(x 1):
1
;
x

f 0 (1) = e + 2 (1

1) = e:

Thus, nally the equation turns to be

y

(e + 2) = e(x 1);

y = e(x

1) + e + 2 = ex e + e + 2 = ex + 2;

y = ex + 2:

3. (5 points) Let f and g be functions satisfying

f (4) = 1;

f 0 (4) = 2;

g (4) = 3;

g 0 (4) = 3:

Find h0 (4) for h(x) = f (x)g (x) 2f (x) + 7.

Solution. The Product Rule implies

h0 (x) = f 0 (x)g (x) + f (x)g 0 (x)

2f 0 (x);

h0 (4) = f 0 (4)g (4) + f (4)g 0 (4)

2f 0 (4) = 2(3) + ( 1)( 3) 2(2) = 5:

dy
x3
for y =
.
dx
x 1
Solution. The Quotient Rule implies

4. (5 points) Find

dy 3x2 (x 1) x3 (1) 3x3 3x2 x3 2x3 3x2 x2 (2x 3)

=
=
=
=
:
dx
(x 1)2
(x 1)2
(x 1)2
(x 1)2

5. (5 points) Find f 0 (x) for f (x) = (ln x)6 .

Solution. The Chain Rule implies

f 0 (x) = 6(ln x)5 (ln x)0 =

6(ln x)5
:
x

6. (5 points) If $2000 is invested at an annual

interest rate r compounded monthly, the amount in the

r 60
account after 5 years is given by A = 2000 1 +
. Find the rate of change of the amount A with respect
12
to the annual interest rate r.

Solution. The Chain Rule implies




dA
r 59 
r 0
r 59  1 
r 59
= 2000(60) 1 +
1+
= 120000 1 +
= 10000 1 +
:
dr
12
12
12
12
12

7. (5 points) The demand equation for a certain product is 4p2 + q 2 = 1300, where p is the price per unit in
dq
dollars and q is the number of units demanded. Find .
dp
Solution. Dierentiating the whole equation with respect to p, we get
d  2 2 d
4p + q = 1300;
dp
dp

8p +

d 2
q = 0;
dp

8p + 2 q

dq
= 0;
dp

dq
8p
4p
=
=
:
dp
2q
q

8. (5 points) For xey + x = y , use implicit dierentiation to nd y 0 and evaluate y 0 at (0; 0).

Solution. Dierentiating the whole equation with respect to x, we get

d
(xey + x) =
dx
dy
ey + xey + 1 =
dx 
dy 

=
dx (0;0)

d
d
dy
y;
(xey ) + 1 = ;
dx
dx
dx
dy
dy
;
(xey 1) = (ey + 1) ;
dx
dx
0
2
e +1
=
= 2:
0
0e 1
1

dx y
dey
dy
e +x
+1= ;
dx
dx
dx
y
dy
e +1
=
;
dx
xey 1

9 (Total 10 points) Consider the function f (x) = x3 + 3x2

(1) (3 points) Find the critical values.

24x + 6.

Solution. Dierentiating the function, we get

f 0 (x) = 3x2 + 6x

24 = 3(x2 + 2x 8) = 3(x + 4)(x 2) = 0

at x = 4 or x = 2:

Hence, f (x) has the critical values x = 4 and x = 2.

(2) (4 points) Determine the intervals where f (x) is increasing and the intervals where f (x) is decreasing.

Solution. We make the sign chart:

Less than 4 4 Between 4 and 2
f 0 (x)
+
0
f (x )
Increases
86
Decreases
x

By the chart, hence, f (x) is increasing on (

1;

2 Bigger than 2
0
+
22
Increases

4) [ (2; 1), while it is decreasing on ( 4; 2).

(3) (3 points) Find the local extrema.

Solution. By the sign chart in (2) above and the First Derivative Test, we conclude that f (x) has the local
maximum at x = 4 with the value f ( 4) = 86, while it has the local minimum at x = 2 with the value
f (2) = 22.

86

6
2

-4
-22