# interest - graph on calculater and effective yield

• Jun 19th 2006, 11:10 AM
shirel
interest - graph on calculater and effective yield
i need some help...

compare saving plans: for instance, you deposit \$1000 in a savings account and the following options are given:

a. 6.2% annual interest rate, compounded annually
b. 6.1% annual interest rate, compounded quarterly
c. 6.0% annual interest rate, compounded continuously

1) Use a graphing utility to graph all three functions in the same viewing window. Can you find a viewing window that distinguishes among the graphs of the three functions? If so, describe the viewing window.
>how to put that in the calculater?(ti-84 plus)
>is there a window which shows that?

2) The effective yield of a savings plan is the percent increase in the balance after 1 year. Find the effective yields for three options listed above. How can the effective yield be used to decide which option is best?

thank you
• Jun 19th 2006, 06:45 PM
ThePerfectHacker
Quote:

Originally Posted by shirel
i need some help...

compare saving plans: for instance, you deposit \$1000 in a savings account and the following options are given:

a. 6.2% annual interest rate, compounded annually
b. 6.1% annual interest rate, compounded quarterly
c. 6.0% annual interest rate, compounded continuously

I remember you asked similar questions to this before. Did you at least try to do these?

a.\$\displaystyle P(x)=1000(1.062)^x\$
b.\$\displaystyle P(x)=1000(1.01525)^{4x}\$
c.\$\displaystyle P(x)=1000e^{.06x}\$

b.Is best
c.Is worst