Belinda wants to invest $1000. The table below shows the value of her investment under two different options for three different years: Number of years 1 2 3
Option 1 (amount in dollars) 1100 1200 1300
Option 2 (amount in dollars) 1100 1210 1331

Part A: Option 1 is exponential because it does not increase by a constant rate. Option 2 is linear because it increases by a constant rate.

Part B:

For option 1: a(b)^x

a=1000 and b=1100/1000=1.1

the function will be:f(n)=1000(1.1)^x

For option 2:

Since the price increases by $100 each year, its linear.

Here would be the function: f(n)=1000+100(n)

Part C: Invest for 20 years in option 1: Yes.

f(20)=1000(1.1)^20

=1.1^20=6.72750

=6.72750x1000

=6727.50

y=6727.50, which is the price of the investment in 20 years.

For option 2:

f(20)=1000+100(20)

=1000+2000

=3000, which is the price the of the investment in 20 years.

If she uses option 2 rather than option 1, she will loose $3727.5