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Mathematics 18 Online
OpenStudy (anonymous):

Using the table, complete parts A, B, and C. Simple Interest Year Price 0 $20,000 10 $32,000 20 A Compound Interest Year Price 0 $20,000 10 $35,816.95 20 B Part A: Find the third terms in the table, A and B, using a linear model (simple interest) and an exponential model (compound interest). Part B: Assuming it has the same annual interest rate rounded to the nearest cent, how much more is the investment worth using an exponential model versus a linear model? Part C:How would a rate of decay or decay factor affect the outcome

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