What is 39% of the Pacific Ocean

Mathematics

1 answer:

Cloud [144]3 years ago

4 0

Answer:

.0039

Step-by-step explanation:

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You need to invest $1000 in a bank account and are give two options. The first option is to earn $50 every month you leave the m

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<h3><u>Option 1</u></h3>

Earn $50 every month.

Let x = number of months the money is left in the account
Let y = the amount in the account
Initial amount = $1,000

$\implies y = 50x + 1000$

This is a <u>linear function</u>.

<h3><u>Option 2</u></h3>

Earn 3% interest each month.

(Assuming the interest earned each month is <u>compounding interest</u>.)

Let x = number of months the money is left in the account
Let y = the amount in the account
Initial amount = $1,000

$\implies y = 1000(1.03)^x$

This is an <u>exponential function</u>.

<h3><u>Table of values</u></h3>

<u />

$\large \begin{array}{| c | l | l |}\cline{1-3} & \multicolumn{2}{|c|}{\sf Account\:Balance} \\ \cline{1-3} & \sf Option\:1 & \sf Option\:2 \\\sf Month & \sf \$50\:per\:mth & \sf 3\%\:per\:mth \\\cline{1-3} 0 & \$1000 & \$1000 \\\cline{1-3} 1 & \$1050 & \$1030 \\\cline{1-3} 2 & \$1100 & \$1060.90 \\\cline{1-3} 3 & \$1150 & \$1092.73 \\\cline{1-3} 4 & \$1200 & \$1125.51 \\\cline{1-3} 5 & \$1250 & \$1159.27 \\\cline{1-3} 6 & \$1300 & \$1194.05 \\\cline{1-3} 7 & \$1350 & \$1229.87 \\\cline{1-3}\end{array}$

From the table of values, it appears that <u>Account Option 1</u> is the best choice, as the accumulative growth of this account is higher than the other account option.

However, there will be a point in time when Account Option 2 starts accruing more than Account Option 2 each month. To find this, graph the two functions and find the <u>point of intersection</u>.

From the attached graph, Account Option 1 accrues more until month 32. From month 33, Account Option 2 accrues more in the account.

<h3><u>Conclusion</u></h3>

If the money is going to be invested for less than 33 months then Account Option 1 is the better choice. However, if the money is going to be invested for 33 months or more, then Account Option 2 is the better choice.