Problem

Investment The graph of the future value of an investment of $1000 for x years earning int...

Investment The graph of the future value of an investment of $1000 for x years earning interest at a rate of 8% compounded continuously is shown in the following figure. The $1000 investment is worth approximately $1083 after 1 year and about $1492 after 5 years.

a. What is the average rate of change in the future value over the 4-year period?


b. Interpret this average rate of change.


c. What is the slope of the line connecting the points satisfying the conditions above?


d. Write the equation of the secant line joining the two given points.

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