Question

What type of function, linear or exponential, can be used to describe the value of the investment after a fixed number of years using option 1 and option 2? Explain your answer.

Answer 1

@jim_thompson5910

Answer 2

option 1: Linear

option2: exponential.

Answer 3

@mjoxprm360

Answer 4

yes?

Answer 5

can you help me with this question?

Answer 6

sure!

Answer 7

For part A) Option 1 is linear because for each year the amount increases by the same amount of $100.
For option 2) it is non-linear (or exponential) because the difference in the amount between two successive years keeps increasing. The differences are: 100, 110, 121, etc.
So it is non-linear or exponential.

They just want you to answer what TYPE of function can describe options 1 and 2. They don't ask for the exact function. So you can say: option 1: linear (for the reason mentioned above)

Answer 8

Do you want part B?

Answer 9

yes

Answer 10

ok

Answer 11

We can make the assumption the interest is compounded annually for option 2 and use the compound interest formula and see if we can find an equation:
A=P(1+rn)nt
. Here n = 1 (if compounded yearly) and so A = P(1+r)^t

Answer 12

understand?

Answer 13

Would you like part C as well?

Answer 14

one moment please

Answer 15

ok

Answer 16

i don't get option b

Answer 17

Okay, option B is just exponential.

Answer 18

but they are asking to write a fuction

Answer 19

Yes

Answer 20

what would the function be?

Answer 21

f(n) = 1000(1.1)^n

Answer 22

how does this describe the vale of the investment?

Answer 23

value*

Answer 24

t = 3:
A = 1000(1.1)^3 = $1331 (agrees with year 3)

Answer 25

Like that.

Answer 26

what would the function for option 1 be?

Answer 27

It was asking what type of function not the function itself in option 1.

Answer 28

no but in part b it asks: Write one function for each option to describe the value of the investment f(n), in dollars, after n years.

Answer 29

They just want you to answer what TYPE of function can describe options 1 and 2. They don't ask for the exact function.

Answer 30

ohhh okay how about part c?