Explanation for Question 11 From the Math (Calc) Section on the 2019 April Sat
So for number 11, we are given this graph here and we are asked 2 to interpret it. So an initial investment of $1,000 is made at a constant 3 annual interest rate. The graphs above show, 4 the corresponding future value V and dollars of the investment for different annual interest 5 rates are after 20 years, one graph shows the value when the interest is 6 compounded daily and the other graph shows the value in the interest is compounded 7 annually, which of the following statements is true. 8 So let's just go in order and see which one is correct. 9 So as our increases at a constant rate, 10 the increases more rapidly, if interest is compounded annually rather than daily. 11 So if we look at our graph here, this graph seems to be the 12 one that is growing at a faster rate. 13 Now, if we check our key, the one with the dots is the one 14 that is compounded daily. 15 So a is incorrect because this should say daily, 16 and this should say annually. So now if we look at B B, 17 it says just that as our increases at a constant rate, 18 be increased as more after leave interest is compounded daily rather than annually. 19 And that's what we decided when we were proving a wrong. 20 So I'm going to write a little check mark next to B. 21 Um, if you have time, I would go ahead and double check that C 22 and D are not correct just to be on the safe side. 23 So now, if we look at C as our increases at a constant rate, 24 the difference in interest compounded daily and interest compoun...