Suppose that
$2000
is loaned at a rate of
9%
, compounded annually. assuming that no payments are made, find the amount owed after
10
years.
do not round any intermediate computations, and round your answer to the nearest cent.

answer: c, the green line

step-by-step explanation:

there is no black line, eliminate b.

simple interest implies periodic payments, but the red line shows no payments, eliminate d.

simple interest has equal payments. if paid say every day, the graph is about a straight line (actually a stairstep).

the yellow line is not straight, eliminate a.

check: the green line is straight, answer is c.

simple interest with positive interest rate gives a straight line sloping up to the right. green line:

g(t) = $100 + ($200-$100) ÷ (20 years) × (t years)

= $100 + (4%/year) × ($100)(t years)

incidentally, the yellow line curving upward represents continuously compounded interest

y = $100 × 2^(t years / (14 assuming the yellow line hits $200 at 14 years. 2^0 is 1, so y(0) = $100; 2^(14/14) is 2, so y(14) = $200.

slope =   (y2 -y1) ÷ (x2 -x1)

slope = (0 -0) / (-5, -7)

slope = 0 / -12 = 0

the slope of the line is zero.   it is perfectly horizontal.

step-by-step explanation: