Alexandra wants to buy a CD for $400 that earns 4% APR and is compounded
quarterly for 3 years. She will be taxed on 20% of the interest that she earns.
What is the total amount of interest Alexandra will earn, after taxes?
O
A. $12.99
O B. $40.58
O C. $50.73
O D. $16.24

answer:

1. 0.04

2. 0.15

step-by-step explanation:

i just finished that assignment for properties of probability distributions.

m a t h w a y. c o m

step-by-step explanation:

im not sure

step-by-step explanation:

answer: c, the green line

step-by-step explanation:

there is no black line, eliminate b.

simple interest implies periodic payments, but the red line shows no payments, eliminate d.

simple interest has equal payments. if paid say every day, the graph is about a straight line (actually a stairstep).

the yellow line is not straight, eliminate a.

check: the green line is straight, answer is c.

simple interest with positive interest rate gives a straight line sloping up to the right. green line:

g(t) = $100 + ($200-$100) ÷ (20 years) × (t years)

= $100 + (4%/year) × ($100)(t years)

incidentally, the yellow line curving upward represents continuously compounded interest

y = $100 × 2^(t years / (14 assuming the yellow line hits $200 at 14 years. 2^0 is 1, so y(0) = $100; 2^(14/14) is 2, so y(14) = $200.