Question: 1.Use the compound interest formula and the continuous compound interest formula to answer the following question: You just won $150,000 in the lottery and you

1.Use the compound interest formula and the continuous compound interest formula to answer the following question:

You just won $150,000 in the lottery and you decide to invest the money for 20 years to save foryour retirement.However, you only get to chooseone of the 4 options below.Which one would you pick and why?

1.A certificate of deposit paying 5.4% interest compounded annually?

2.A money market certificate paying 5.35% interest compounded semi-annually?

3.A bank account paying 5.3% interest compounded monthly?

4.A bank account paying 5.25% interest compounded continuously?

4. Explain step by step how to determine if two functions are inverses of each other. Provide a detailed example.

5. Give an example from real life where inverse functions are utilized. For ideas, look it up on the internet or find some examples in the textbook.

6. In your own words answer the following question - What is compound interest? What is the difference between compounded monthly and continuously?

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