Question

FAN + MEDAL + TESTIMONIAL
Annie is a financially responsible person who keeps a detailed record of the activities in her bank account.

(4 points)

Score



1. Annie is considering opening a certificate of deposit (CD) account. The CD account will earn interest. However, it does not allow her to deposit or withdraw money for 2 years.
First Bank is offering a CD account with a 1.8% interest rate each month. The interest is compounded. In other words, the interest earned each month will be based on the total account balance from the previous month. Annie has $500 to start the account.

Answer 1

(a) Fill in the table showing the amount of money in the CD account over 4 months. Banks always round down to the nearest cent when necessary.

(b) If Annie graphed the function, what would the y-intercept be? How do you know this?

(c) Is the relation a function? Explain why or why not.

(d) Is the relation linear? If so, state the rate of change and write the equation of the relation, where x is the number of months and y is the amount in the account. If not, explain why not.

Answer:


Months

0

1

2

3

4

Amount

in CD account

$500.00

Answer 2

Normally for this kind of questions we use Exponential functions to calculate the interests rate or the amout that you will recieve after specific time for a certain interest rate.

The Exponential function rule is: \[f(x)= p(1+r)^x\]
where p= the inital amount of money and it is also the y intercept
And R= The interest rate
X= the amount of time.

Therefore in your question the p= 500
R= 1.8% which means 1.8/100 which equals 0.018
And x=2

Now plug all these numbers in the function above so that we can find how much will she/he get after 2 years.
\[f(x) = 500(1+ 0.018) ^2\]
\[f(x) = 518.162\]
That's the amount she will get after 2 years

Now give me a moment for the questions A,B,C

Answer 3

are you good with the above info or do you need to ask about something

Answer 4

Yeah I understand what you are saying thanks so much for helping me out!

Answer 5

No problem, am working on the rest,

Answer 6

Okay! :))

Answer 7

okay so Part A we will have to work on linear functions, is that what your Assignment about or do you have to only work with Exponential functions?