Use the compound interest formula to determine the final value of the given amount.
1 answer:
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Answer: Choice B. sqrt(2)
Draw out a right triangle in quadrant IV as you see in the attached image below. The horizontal and vertical legs are both 1 unit long. To ensure that the signs are properly set up, I am making the vertical leg BC have a label "-1" to mean this is below the x axis. Note how
tan(theta) = opposite/adjacent = BC/AB = -1/1 = -1
Use the pythagorean theorem to find that the hypotenuse AC is sqrt(2) units long
a^2 + b^2 = c^2
(1)^2 + (1)^2 = c^2
2 = c^2
c^2 = 2
c = sqrt(2)
The secant of theta is the ratio of the hypotenuse over the adjacent side, so we end up with
sec(theta) = hypotenuse/adjacent
sec(theta) = AC/AB
sec(theta) = sqrt(2)/1
sec(theta) = sqrt(2) which is why choice B is the answer
