The minimum amount of money, y, a bank guarantees an account holder will gain for a $2,000 deposit being compounded monthly for x years is represented by the inequality y≥2,000(1.045)x . The maximum balance of a $2,000 investment into a risky hedge fund is represented by the inequality y≤−16x2+96x+2,000 . On the graph of these two functions, the x-axis represents time, and the y-axis represents the investment balance. What does the shaded section represent?Select the correct answers from the lists.(1 point)The shaded section represents all the possible combinations of  and investment balances for which the stock provides a financial return for the $2,000 investment.

1 answer

The shaded section represents all the possible combinations of time (x) and investment balances (y) for which the stock provides a financial return for the $2,000 investment. This implies that the shaded area is where the guaranteed minimum gain from the bank is greater than or equal to the maximum possible loss from the hedge fund, indicating that investments are likely to yield a financial return rather than a loss.

So, to summarize:

  • The shaded section represents all the possible combinations of time (x) and investment balances (y) for which the stock/hedge fund provides a financial return for the $2,000 investment.