Question

Gordon is evaluating some stocks he wants to purchase. You can see the function of the stock price below. The variable x represents days. (Attachment below)

Answer 1

Create the price function for Stock D. It should have the second lowest starting price and the second highest rate of growth. Using complete sentences, justify that your function meets these requirements.

Answer 2

Okay .. the first function has a starting price of 25, the second 22, and the third, 30
so the starting price of d has to be between 22 and 25

Answer 3

23, or 24?

Answer 4

Yes it can be either of those, whichever you would like

Answer 5

Let's go with 23 :p

Answer 6

Now for the rate of growth, since b and c are both decreasing and it has to be second highest it just has to be less than a which has a growth of .08 so it has to be less then .08 but remember it cant be less than 1 or it would be a decay function

Answer 7

so you should have f(x)=23(1.07)^x or something like that because it doesnt have to be .07, make sense?

Answer 8

Oh I made a mistake... The c is increasing .04, so it must be between .04 and .08 sorry!

Answer 9

Haha. yeah. I'm keepin' up. :)

Answer 10

The equation for d would be f(x)=23(1.07)^x
where 23 is your starting price, which fits the description because a has a starting value of 25, b has a starting of 22 and c has a starting of 30. Since 22<23<25, it is the second lowest starting value. B is a exponential decay function so that would have the least rate of (growth it is actually getting smaller) and b and c have growth rates of 8% and 4%, so function d needs to have a growth rate that is less than function a and more than function c. The function we made has a growth rate of 7 percent and 4<7<8!

Answer 11

i mean a and c not b and c for the growth rates... sorry something up with me today

Answer 12

That actually makes sense! Thanks man!

Answer 13

No problem!