Hi there!
We can look at each function, f(x) and g(x), to determine which is exponential.
Use slope formula: m = y2-y1/x2-x1
f(x) starts off with a slope at about $1800/year, but becomes about $1100/year.
g(x) starts off with a slope of about $1500/year, but becomes about $1874/year.
Thus, g(x) is exponential, because g(x)'s slope is increasing across the interval.
The interest rate is 6.992%, if a bank advertises that it compounds money quarterly and that it will take Double your money in 10 years.
Step-by-step explanation:
The given is,
Compounds money quarterly
Double your money in 10 years
Step:1
Formula to calculate future investment with compounded quarterly,
...............................(1)
Where, A - Future amount
P - Initial investment\
r - Rate of interest
n - No. of compounding in a year
t - No. of years
Step:2
Let, P = X
A = 2X ( Double your money )
From given, n - 4 ( for compounding quarterly )
t - 10 years
From equation (1)
Take root root on both side,
r = 6.992 %
Result:
The interest rate is 6.992%, if a bank advertises that it compounds money quarterly and that it will take Double your money in 10 years.