Consider the following exponential equation: FV = PV(1 + i)* 11. (where FV is the future value at time t, PV is the present value at time 0, and i is the interest rate) (a) show by taking logs that log FV can be plotted as a linear function (straight line) (b) what is the gradient of this linear function? (c) sketch the linear function, labelling the axes, and labelling any points where the function crosses an axis.

College Algebra
10th Edition
ISBN:9781337282291
Author:Ron Larson
Publisher:Ron Larson
Chapter5: Exponential And Logarithmic Functions
Section5.5: Exponential And Logarithmic Models
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11.
Consider the following exponential equation: FV = PV(1 +
(where FV is the future value at time t, PV is the present value at time 0, and i is the interest rate)
(a) show by taking logs that log FV can be plotted as a linear function (straight line)
(b) what is the gradient of this linear function?
(c) sketch the linear function, labelling the axes, and labelling any points where the function crosses an axis.
Transcribed Image Text:11. Consider the following exponential equation: FV = PV(1 + (where FV is the future value at time t, PV is the present value at time 0, and i is the interest rate) (a) show by taking logs that log FV can be plotted as a linear function (straight line) (b) what is the gradient of this linear function? (c) sketch the linear function, labelling the axes, and labelling any points where the function crosses an axis.
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