Which of the following best describes the amount of money you'll have if you $1000 into a CD earning 2% annual compound for 10 years? a.) The same $1000 you started with
b.) Exactly $1200
c.) slightly more than $1,200
d.) $2000

  c.)  slightly more than $1,200

Step-by-step explanation:

Simple interest at 2% for 10 years would give you exactly ...

  A = P(1 +rt) = 1000(1 +.02(10)) = 1000(1.2) = 1200

Compound interest gives you interest on the interest, so the amount will be greater than 1200.

__

The "rule of 72" tells you the doubling time at a rate of 2% is approximately ...

  72/2 = 36 years

So, in 10 years, you will not achieve an account balance of $2000.

__

We have determined that choices a, b, d are unreasonable, and that choice c is reasonable.

Comment on the numbers

If you work through the exact numbers, you find the CD will have a value of $1,218.99, and that the time it would take to reach $2000 is 35 years.

72 is the answer to this problem

step-by-step explanation:

let

we know that

the y-intercept is the y-coordinate of the point when the value of x is equal to zero

so

the y-coordinate of the point a is the y-intercept

the answer part a) is

the value of y-intercept is

part b) find the slope m

we know that

the value of the slope is equal to

substitute the values

therefore

the answer part b) is

the value of the slope is equal to

the general answer is

the slope is

the value of y-intercept is