Question

Drag each situation to show whether it can be modeled using a linear or an exponential function. If the situation cannot be modeled with either function type, drag it into the container labeled Neither.

Answer 1

Explanation:

A). An investment account earns 2.8% simple interest.

Since investment amount increases every year linearly, therefore, the modeled situation represents a LINEAR FUNCTION.

B). The price of a stock varies by 2.8% each week.

Since price of the stock may increase or decrease every week, therefore, this situation can't be modeled by any function.

Therefore, the answer is NEITHER.

C). An investment account earns 2.8% compound interest, compounded monthly.

Formula to get the value of the final amount in the account is,

Final value = Initial value ×
`(1+(.028)/(100))^t`

Here 't' = Duration of investment

It's an EXPONENTIAL FUNCTION.