After 1 year, how does the amount of money in problem 2 compare to that of problem 1? What caused the difference in amounts?
To get a sense of what is happening, let’s simplify the situation to consider $1 invested at 100% per year for 1 year.
Identify the graph of (use desmos)
Identify the graph of (use desmos)
Tell whether the function represents exponential growth or exponential decay.
Try graphing this. What does the graph do?
Tell whether the function represents exponential growth or exponential decay.
You want to invest $2500 in an account to save for college. Account 1 pays 6% annual interest compounded quarterly. Account 2 pays 4% annual interest compounded continuously. Which account should you choose to obtain the greater amount in 10 years?
Compounded Quarterly (n = 4)
Compounded Continuously
Which account should you choose to obtain the greater amount in 10 years?
Identify the graph of (use desmos)
represent
Identify the graph of the function.