In this problem you will compare the effects of different compounding periods on the interest an investment earns. Complete the
1 answer:
Answer:
see attached
Step-by-step explanation:
You are asked to use the compound interest formula for different values of n, the number of times per year the interest is compounded.
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The basic formula is ...
A = P(1 +r/n)^(nt)
for the amount in an account in which principal P earns interest at annual rate r compounded n times per year for t years.
The problem statement gives values for P, r, t, so we only need to compute the result for different values of n. With the given values filled in, the formula is ...
A = 1000(1 +0.045/n)^(10n)
Values of n to be used are ...
- annually: n = 1
- quarterly: n = 4
- monthly: n = 12
- daily: n = 365
The formula you will evaluate uses these values where 'n' is in the formula. Corresponding account balances are ...
- annual compounding: $1552.97
- quarterly compounding: $1564.38
- monthly compounding: $1566.99
- daily compounding: 1568.27
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For repetitive evaluation of the same formula, we like a calculator or spreadsheet. Many calculators have the "time value of money" formulas pre-programmed. This is shown in the second attachment, where the value that varies is "C/Y", the number of compoundings per year.
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Answer:
OPTION C: y = 2x² + 1
Step-by-step explanation:
To identify the function substitute the values of 'x' and 'y' and compare LHS and RHS.
OPTION A: y = -(5x + 1)
When x = -2, y = 9
Therefore, LHS = 9
RHS = -(5(-2) + 1) = -(-10 + 1) = 9
So, LHS = RHS.
Now, we check for the second pair. i.e., (x, y) = (-1, 3)
LHS = 3
RHS = -(-5 + 1) = -(-4) = 4
LHS RHS
So, this option is eliminated.
OPTION B: y = - 4x + 1
Like OPTION A, substitute x = -2 and y = 9.
LHS = 9
RHS = - 4(-2) + 1 = 9
LHS = RHS
Now for the second pair: (-1, 3)
LHS = 3
RHS = -4(-1) + 1 = 4 + 1 = 5
We see LHS RHS.
So, this option is eliminated as well.
OPTION C: y = 2x² + 1
Substituting the first pair: (-2, 9)
LHS = 9
RHS = 2(4) + 1 = 9
So, LHS = RHS
Now For the second pair: (-1, 3)
We have LHS = 3
RHS = 2(1) + 1 = 3
LHS = RHS.
The third pair: (0, 1)
LHS = 1
RHS = 2(0) + 1 = 1
For the pair: (1, 3)
LHS = 3
RHS = 2(1) + 1 = 3
Again, LHS = RHS
For the pair: (2, 9)
LHS = 9
RHS = 2(4) + 1 = 9
Since, for all the pairs we have LHS and RHS equal, we con conclude that this is the correct representation of our function.
Similarly, substitute OPTION D. The option can be eliminated in the second pair itself.
So, the answer is OPTION C.