Mathematics, 24.11.2020 14:00 jeremiahdacalio
Belinda wants to invest $1000. The table below shows the value of her investment under two different options for three different years:
Number of years 1 2 3
Option 1 (amount in dollars) 1100 1200 1300
Option 2 (amount in dollars) 1100 1210 1331
Part A: Option 1 is exponential because it does not increase by a constant rate. Option 2 is linear because it increases by a constant rate.
Part B:
For option 1: a(b)^x
a=1000 and b=1100/1000=1.1
the function will be:f(n)=1000(1.1)^x
For option 2:
Since the price increases by $100 each year, its linear.
Here would be the function: f(n)=1000+100(n)
Part C: Invest for 20 years in option 1: Yes.
f(20)=1000(1.1)^20
=1.1^20=6.72750
=6.72750x1000
=6727.50
y=6727.50, which is the price of the investment in 20 years.
For option 2:
f(20)=1000+100(20)
=1000+2000
=3000, which is the price the of the investment in 20 years.
If she uses option 2 rather than option 1, she will loose $3727.5
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Belinda wants to invest $1000. The table below shows the value of her investment under two different...
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