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Properties of an Exponential Growth Model

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An investment’s value, V(t)V(t), is modeled by the function V(t)=V0er∗tV(t) = V_0 e^{r*t}. Consider the following statements: (I) The doubling time for the investment is given by t=ln⁡(2)rt = \frac{\ln(2)}{r}. (II) If r=0.07r = 0.07, the doubling time is approximately 9.9 years. (III) The derivative of V(t)V(t) is r∗V0er∗tr*V_0 e^{r*t}, which implies that the rate of growth is proportional to the current value of the investment. Which of these statements are true?

A

I and II only

B

I, II, and III

C

II and III only

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