Question

Demetri is trying to determine which of the two loans would be better.

Loan A: Interest is added four times a year with an annual interest rate of 5%
Loan B: Interest is added six times a year with an annual interest rate of 4.5%
Both loans could be best modeled by what type of relationship?
A)
continuous
B)
discrete
C)
exponential
D)
Linear

Answer 1

Discrete

Explanation:

Since interest is not added all the time but only a set number of times a year both loans would be best modeled by a discrete relationship.