The Table Lists the Value Y (In Dollars)of $100 Deposited

question 23

Essay

The table lists the value y (in dollars)of $100 deposited in a certificate of deposit (CD)at a
bank after y years. $$\begin{array} { | l | l | l | l | l | l | l | } \hline \text { Year } & 1 & 2 & 3 & 4 & 5 & 20 \\\hline \text { Value } & 103 & 106.09 & 109.27 & 112.55 & 115.93 & 180.61 \\\hline\end{array}$$ Construct a scatterplot and identify the mathematical model that best fits the given data.
Assume that the model is to be used only for the scope of the given data, and consider only
linear, quadratic, logarithmic, exponential, and power models. Include the type of model and
the equation for the model you find.

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Definitions:

Saving

The share of earnings not used for immediate spending but saved or invested for future needs.

Consumption Function

An economic formula representing how consumer spending is related to various factors, including income levels.

Personal Saving

Personal saving is the portion of personal income that is not expended on consumption or taxes and is instead saved for future use.

Total Saving

The sum of personal savings, plus business savings (undistributed corporate profits), and government surplus in an economy.