Annie is a financially responsible person who keeps a detailed record of the activities in her bank account.
1. Annie is considering opening a certificate of deposit (CD) account. The CD account will earn interest. However, it does not allow her to deposit or withdraw money for 2 years.
First Bank is offering a CD account with a 1.8% interest rate each month. The interest is compounded. In other words, the interest earned each month will be based on the total account balance from the previous month. Annie has $500 to start the account.
(a) Fill in the table showing the amount of money in the CD account over 4 months. banks always round down to the nearest cent when necessary.
(b) if annie graphed the function, what would the y-intercept be? how do you know this?
(c) is the relation a function? Explain why or why not.
(d) is the relation linear? if so, state the rate of change and write the equation of the relation, where x is the number of months and y is the amount in the account. if not, explain why not.
