Chapter 11.7, Problem 10E

To determine

To explain:

The data in the scatter plot should be modelled with an exponential function.

Answer to Problem 10E

Exponential

Explanation of Solution

Given:

The interest is compounded continuously in the graph

Concept used:

Formula:

The equation is

  $N=N_0{e}^{rt}$

Calculation:

  $N=N_0{e}^{rt}\mathrm{....................}\left(1\right)$

The time needed to quadruple an investment replace $N$ by $4N_0$ if

From equation (1)

  $\begin{array}{l}4N_0=N_0{e}^{rt}\\ 4=e^{rt}\\ \ln 4=\ln e^{rt}\\ \ln 4=rt\\ t=\frac{\ln 4}{r}\end{array}$

The data is modeled with an exponential function.

The points approach a horizontal asymptote.

Exponential functions is horizontal asymptotes.