Determining the Appearance of a Graph
Leticia invests $200 at 5% interest. If y represents the amount of money after x time periods, which describes the
graph of the exponential function relating time and money?
O
O
O
O
The initial value of the graph is 200. The graph increases by a factor of 1.05 per 1 unit increase in time,
The initial value of the graph is 200. The graph increases by a factor of 5 per 1 unit increase in time,
The initial value of the graph is 500. The graph increases by a factor of 2 per 1 unit increase in time,
The initial value of the graph is 500. The graph increases by a factor of 1.02 per 1 unit increase in time,

answer: c, the green line

step-by-step explanation:

there is no black line, eliminate b.

simple interest implies periodic payments, but the red line shows no payments, eliminate d.

simple interest has equal payments. if paid say every day, the graph is about a straight line (actually a stairstep).

the yellow line is not straight, eliminate a.

check: the green line is straight, answer is c.

simple interest with positive interest rate gives a straight line sloping up to the right. green line:

g(t) = $100 + ($200-$100) ÷ (20 years) × (t years)

= $100 + (4%/year) × ($100)(t years)

incidentally, the yellow line curving upward represents continuously compounded interest

y = $100 × 2^(t years / (14 assuming the yellow line hits $200 at 14 years. 2^0 is 1, so y(0) = $100; 2^(14/14) is 2, so y(14) = $200.

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step-by-step explanation:

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step-by-step explanation:

payback

yes.. it's proven to be 36.