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Year 1
Year 2
Year 3
Year 4
Year 5
Explain to your friends how to prove that the investor's plan is a linear function and
the CDs are exponential functions. Use complete sentences.
Find the average rate of change for the investor's plan and the 5-year CD between
years 2 and 3, and between years 3 and 5. Explain what this shows in complete
sentences.
One of your friends suggests another 5-year option that gives interest based on the
function k(x) = 5000(1.02)x. Explain what the 1.02 represents in terms of the CD
and if it is a better plan than the 5-year CD you found. Use complete sentences.
Make a final recommendation on what plan you and your friends should follow.
Consider that you cannot collect your money from a CD until it has fully matured.
Your recommendation should be at least three sentences long.