4 37. ERROR ANALYSIS You invest $500 in the stock of a company. The value of the stock decreases 2% each year. Describe and correct the error in writing a model for the value of the stock after years. Initial)(Decay amount y= 500(0.02)' factor/ 38. ERROR ANALYSIS You deposit 5 that pays 1.25% annual interest. $250 in an account Describe and correct the error in finding the balance after 3 years when the interest is compounded quarterly X A= A-250(1+125) $6533.29 In Exercises 39-42, use the given information to find the balance in the account earning compound interest after 6 years when the principal is $3500. 39. r=2.16%, compounded quarterly 41. r = 1.26%, compounded monthly 40.2.29%, compounded monthly 42. 1.83%, compounded daily 5 MTR = 43. STRUCTURE In the compound interest formula for interest compounded yearly, A P(1+r)', what does P represent? What does (1+r)' represent? Does P depend on (1+r)? Does (1+r)' depend on P? Explain. 5 44. STRUCTURE The equation y = 1000(1.12)' represents the balance y (in dollars) in an account after 1 years. MTR a. What is the annual interest rate? Explain. b. Rewrite the function in the form y = 10006121 c. Explain how you can use your equation in part (b) to find the monthly interest rate. 5. COMPARING FUNCTIONS Compare the graph of f(x)=2(1.5) to the graph of g. Which graph has a greater y-intercept? Which graph is increasing at a faster rate? Explain your reasoning. Ay A 4 g 2 2 4 46. HOW DO YOU SEE IT? The graph shows an exponen ial function of the form f(x) = ab*. a. Determine whether frepresents exponential growth or exponential decay. b. What are the domain (-1,4) (0, 1) (1.) (2.6) and range of the function? Explain. Chapter 6 Exponential and Logarithmic Functions