Question

Please help me!!! Annie finds another bank, Star Bank that offers a CD account with a 2% interest rate every month. Star Bank's interest is not compounded. The interest is based on the original amount of deposit. Remember that Annie has $500 to start the account. She will not withdraw or deposit more money in the account for 2 years.

(a) Fill in the table showing the amount of money in the Star Bank CD account over 4 months. Months 0__ 1__ 2__ 3__ 4___ Amount in CD account

(b) If Annie graphed the relation, 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.

(e) Annie plans to keep her CD account for 2 years. Which bank would you suggest Annie open her account with and why?

Answer 1

So the money on annies account can be solve using

F = P ( 1 + i)^n

Where f is the future money

P is the initial money

I is the interest rate

N in the number of months

At n = 0

F = 500

N = 1

F = 500 ( 1 + 0.02)^1

F = 510

N = 2

F = 500( 1 + 0.02)^2

F = 520.2

N = 3

F = 500( 1 + 0.02)^3

F = 530.6

N = 4

F = 500( 1 + 0.02)^4

F = 541.22