Functions Modeling Change: A Preparation for Calculus, 5th Edition

Published by Wiley
ISBN 10: 1118583191
ISBN 13: 978-1-11858-319-7

Chapter 4 - Exponential Functions - 4.5 The Number e - Exercises and Problems for Section 4.5 - Exercises and Problems - Page 174: 33

Answer

Curve A corresponds to continuous compounding. Curve B corresponds to annual compounding. Initial amount: $\$500 $

Work Step by Step

Curve A corresponds to continuous compounding because the investment will grow faster since the interest earned also earns interest and curve B corresponds to annual compounding. The initial amount in both cases is the vertical intercept, $\$500 $.
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