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

Stock

A

B

C

Price f(x) = 25(1.08)x

x

f(x)

0 22.00
1 21.56
2 21.13
The initial price of this stock is $30, but it has been increasing 4% each day.
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.

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.


Stock

A

B

C


Price f(x) = 25(1.08)x 

x

f(x)


0 22.00 
1 21.56 
2 21.13 
 The initial price of this stock is $30, but it has been increasing 4% each day. 
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.

anonymous · Answer

I have add the problem in the attachment and what I need to do, please help me. I will also add what I did and I only need to create an option that is the second lowest starting price between $22 and $25. Please help

anonymous · Answer

Need to create an option that is the second lowest starting price, between $22 and $25

radar · Answer

I would say the 2nd lowest is the 21.56 value.

anonymous · Answer

Stock D must be between $22 and $25 dollars

anonymous · Answer

So it will be the second lowest starting price and second highest rate of growth

radar · Answer

It looks like you have the 2nd highest growth, but I am confused about the choice of initial value of 25, where are the choices, are they what is listed with the problem, if so I don't see any $25.....???

radar · Answer

Wouldn't 21.56 be the second lowest???

anonymous · Answer

If you look in the first attachment the A says underneath the function where $25  is and then on column B the $22 so I need the function that will be in between them

radar · Answer

O.K.  I see it now 25.  is the correct from that list, it would be the 2nd lowest.

radar · Answer

$$f(x)=25(1.04)^{x}$$Is that what you get?

anonymous · Answer

yes I know that one but if is between $22 and $25 can I write

f(x)=23 (1+0.04)^x  so it will be between $22 and $25????

radar · Answer

That would seem correct.

anonymous · Answer

Where 23 is the initial price in dollars and .04=4% of the daily growth and x is the number of days????

radar · Answer

I base that on the f(x) equation provided with the problem.  Although the equations given for calculating simple interest are different.  It appears that you are doing it correctly, but I am not an expert in financial math.

anonymous · Answer

Ok tanks for your help I really appreciate it.

radar · Answer

You're welcome, I am sorry I wasn't more helpful.

anonymous · Answer

It is ok