(Solved): Consider the derivative of the formula \( R=\sqrt{\frac{v}{100}}-1 \). What is the meaning of the ...

Consider the derivative of the formula \( R=\sqrt{\frac{v}{100}}-1 \). What is the meaning of the statement \( R^{\prime}(125) \approx 0.004 \) ? If the value of the gold (or other asset) is \( \$ 125 \) after two years, the annual rate of return is 4 percent. If the value of the gold (or other asset) is \( \$ 126 \) rather than \( \$ 125 \) after two years, the annual rate of return is higher by \( 4 / 10 \) of a percent. If the value of the gold (or other asset) is rising with a slope of 125 every two years, the annual rate of return has a slope of 4.