Question

The amount of money in an account may increase due to rising stock prices and decrease due to falling stock prices. Maggie is studying the change in the amount of money in two accounts, A and B, over time. The amount f(x), in dollars, in account A after x years is represented by the function below: f(x) = 9,628(0.92)x
1. Part A: Is the amount of money in account A increasing or decreasing and by what percentage per year? Justify your answer. (5 points)2. Part B: The table below shows the amount g(r), in dollars, of money in account B after r years. r3. (number of years) 1 2 3 4 g(r) (amount in dollars) 1,375 1,512.50 1,663.75 1,830.134. Which account recorded a greater percentage change in amount of money over the previous year? Justify your answer. (5 points)

Answer 1

Answer:

Step-by-step explanation:

Part A

The function representing the amount of money in account A after x years is represented by the function

f(x) = 9,628(0.92)x

The amount of money in account A is decreasing by 8% per year.

Part B

The table showing the amount g(r), in dollars, of money in account B after r years with number of years given as 1 2 3 4 and amount in dollars) 1,375 1,512.50 1,663.75 1,830.134.

Looking at the table,

The change per year is

(1512.5 - 1375)/1375 = 137.5/1375 = 0.1

The percentage change is 0.1× 100 = 10%

The amount in account B increases by 10%

Therefore, account B recorded a greater percentage change in amount of money over the previous year since the change in account B is 10℅ which is greater than 8% in account B