miahorses81
Answered

Welcome to Westonci.ca, the Q&A platform where your questions are met with detailed answers from experienced experts. Our Q&A platform offers a seamless experience for finding reliable answers from experts in various disciplines. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.

A bank offers two different investment options.

Option 1 pays compound interest of 3.6% compounded monthly, meaning that each month the balance increases by 112 of 3.6% of the previous month's balance.

Option 2 pays simple interest of 6% per year, meaning that each year the balance increases by 6% of the initial deposit.

Which type of function can be used to model each option?

Sagot :

The function that can be used to represent option 1 is an exponential function.

The function that can be used to represent option 2 is a linear function.

Linear functions

A linear function is a function that has a single variable raised to the power of 1. Linear functions are usually in the form x + 10.

Option 2 expressed as a linear function is b x 0.06 x 1

Where b represents the amount of money deposited.

Exponential functions

An exponential function is usually in this form: y = [tex]a^{x}[/tex].Option 1 expressed as an exponential function is p(1.036)^y

Where:

  • p = principal
  • y = number of years

To learn more about compound interest, please check: https://brainly.com/question/18760477

Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.