Victoria has some money from her birthday and the amount is modeled by the function h (x) = 200. She read about a bank that has savings accounts that accrue interest according to the function s (x) = (1.05) x - 1. Victoria is thinking about putting her money into the savings account to gain interest. Using complete sentences, explain to Victoria how she can combine her functions to create a new function, and explain what this new function means.

Question

Giancarlo Garcia

Mathematics

6 June, 01:17

Victoria has some money from her birthday and the amount is modeled by the function h (x) = 200. She read about a bank that has savings accounts that accrue interest according to the function s (x) = (1.05) x - 1. Victoria is thinking about putting her money into the savings account to gain interest. Using complete sentences, explain to Victoria how she can combine her functions to create a new function, and explain what this new function means.

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Marcus · Answer 1

Interest gained for a particular period equals to Money invested (kept) in Savings account for that period multiplied by Interest accrued on this money.

Therefore, Accrued interest i (x) = h (x) * s (x) = 200 * [ (1.05) x - 1 ],

where x is the number of years for which money is invested.

So, new function i (x) = (210) x - 200.