John invests into a money market account that earns 3.95% interest compounded quarterly. Determine the initial investment required to obtain $25,000 after 10 years. Immersive Reader (20 Points)

$24,032.22

$37,037.77

$16,874.67

$14,815.09

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.

none of these

step-by-step explanation:

23 + 34 add up to 57 so just inform the teacher of this really stupid mistake