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Options in Banking(pp. 1 of 4)

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<strong>Options</strong> <strong>in</strong> Bank<strong>in</strong>g (<strong>pp</strong>. 4 <strong>of</strong> 4)<br />

f. Construct a scatter plot <strong>of</strong> maturity value as a function <strong>of</strong> time.<br />

g. What function rule can be used to represent the<br />

relationship between the maturity value <strong>of</strong> the<br />

loan and the time <strong>of</strong> the loan?<br />

h. Does the function represent a direct variation?<br />

Expla<strong>in</strong> your reason<strong>in</strong>g.<br />

i. What does the y-<strong>in</strong>tercept represent <strong>in</strong> the<br />

problem situation?<br />

j. What does the slope represent <strong>in</strong> the problem situation?<br />

k. Construct a scatter plot <strong>of</strong> monthly payment as a function <strong>of</strong> time.<br />

l. What function rule can be used to represent the<br />

relationship between the monthly payment and<br />

the time <strong>of</strong> the loan?<br />

m. What parent function represents this<br />

relationship?<br />

n. Is the relationship <strong>in</strong>creas<strong>in</strong>g or decreas<strong>in</strong>g? How<br />

does this compare with the two previous<br />

relationships?<br />

Mathematical Models with A<strong>pp</strong>lications<br />

HS Mathematics<br />

Unit: 09 Lesson: 01<br />

© 2008, TESCCC 10/18/08 page 35 <strong>of</strong> 88

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