1.

The compound interest formula is:

nt
i
A=P(1+ )
n
Let’s found what will the account be worth in 20 years with compound interest:

0.0812 (12)(20)
A=8500(1+ )
12
A=$42888.18

The simple interest formula is:

A = P*r*t

Let’s found what will the account be worth in 20 years with simple interest:

A = 8500 × 0.0812 × 240

A = $165648
The graph of simple and compound interest for this account is below:
To find at what point one is better than the other we need to resolve the following equation:

nt
i
P(1+ ) > A = P(1 + rt)
n

8500 *
0.0812 12t < 8500 *0.812 * 12 *t
(1+ )
12
8500*1.006712 t < 82824t

82824 t
1.006712 t <
8500

1.006712 t < 9.744t

 x
2. The reflection of is -5(0.5)