For certain types of investments, such as certificates of deposit, you earn interest every few years. Consider the function . What do the constants 1000, 1.24, and 10 tell you about the investment? What is the investment worth after 10 years? 20 years? How long does it take for the initial investment to double in value? When you save money in bank accounts, the interest is added to your account more than once per year. Consider the function In this situation, the interest is added to your account every month or every of a year. We say that the nominal interest rate is 24% (per year). This 24% interest is divided across the 12 months in the year. We say that the interest is compounded monthly. Note: you are not getting 24% each month. What is the value of the account (assuming no more money is put in or taken out) after 1 year? 2 years? 5 years? In the equation why is the exponent 12x, and not x, or x/12? Question 2 continued... In the equation why is the base ? The nominal interest was stated as 24% for the year. How much interest is computed each month? What would the function be if instead the interest was "compounded quarterly