Question

Diana invested some money in a bank at a fixed rate of interest compounded annually. The equation below shows the value of her investment after x years.

f(x) = 400(1.01)x

What was the average rate of change of the value of Sophia's investment from the second year to the fifth year?

1.01 dollars per year

2.47 dollars per year

4.12 dollars per year

12.36 dollars per year

Answer 1

@hisbaby can you help me with this?

Answer 2

I'm trying to figure out a easy way to explain it to you.

Answer 3

ok thanks

Answer 4

okay so basically the fixed rate is 400, you you get the equation f(x) = 400(1.01)x

with this equation x= the years shes invested.

so you'd plug in 2 for one equation like so f(x) = 400(1.01)(2)


an easier way I've found to do this is f(x)=400(.01)(2)

then using to same equation you're going to substitute 5 instead of 2 so it'd be


f(x)=400(.01)(5)

Answer 5

when you solve those out by just simply multiplying them out... you'll subtract the products and that will give you a rounded version of your answer

Answer 6

ok thanks

Answer 7

You're welcome :) If you have anymore questions, Don't hesitate to ask!

Answer 8

i got B?

Answer 9

when you multiply it multiply 400x.01 to get 4 then multiply the four by the 2 to get 8

then take the same thing 400x.01 to get 4 again but this time multiply it by 5 to get 20

then subtract the 20 and the 8 to get 12. Then you'd divide that by how many years are between the 2nd and 5th year which is 3 so 12/3 equals 4. the answer that would round to 4 is C. 4.12 dollars per year

Answer 10

ok, thanks

Answer 11

You're welcome :)