To identify the correct answer: Which of the following graphs is the accurate graph of the loan balance?
The answer is Graph (b).
Given information:
Interest rate: Twice
Explanation:
The graph of the present value is an exponential that has been reflected vertically and horizontally. It has the generic form
The graph of Carlos' balance will be the graph of the present value subtracted by the graph of the balance. If
Would be the graph of the balance, which means we have reflected about the
As long as
The curve may become sharper or softer depending on the interest rate (as happens when we change the base of the exponential), but the characteristics will be the same.
Chapter 3 Solutions
PRECALCULUS:GRAPHICAL,...-NASTA ED.
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