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:

Present Value

The present value of a future sum of money or series of cash flows, discounted at a certain rate of return.

Expected Costs

The anticipated expenses associated with the production of goods or services or the undertaking of an activity, based on historical data, trends, and analysis.

Economic Profit

The contrast between earnings from outputs sold and the opportunity cost of using specific inputs.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the outstanding loan.