College Math

Running head : Graph of Different Equations

Graphical Representations of Different Equations

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Graphical Representations of Different Equations

To predict the future of the financial world you have to deal with many numbers which you obtained in the past . You have to study its trends to be able to understand where the financial world would stand in a certain time

Financial managers use functions of time . These functions were formulated for many purposes and we are focusing on its use in understanding financial trends

. These functions have differs in kind The most commonly use kind of functions in Finance are linear functions quadratic functions , polynomial functions , rational functions exponential functions , and logarithmic functions (Leithold , 1990

This graph shows how it differs in graphically The linear function (y x ) is simply a line which differs in slope depending on the coefficient of x and it will shift to right if you add a constant or to left if you subtract . While the quadratic function (y x2 ) is like a cup which widens its mouth while the coefficient of x becomes larger and shifts left or right when you subtract or add a constant . The polynomial function (y x2 x ) have different orientation since the graph depends on how many terms the function has , the highest power and the coefficient of the terms . Likewise , it will shift left if a constant was subtracted and it will shift to the right when a constant was added . The rational function (y 1 /x ) has the same behavior as linear function but the only restriction is x cannot be zero . The exponential function (y ex ) is has the same properties of other functions . The only difference is the y-value never goes below zero . The logarithmic function (y log10x ) is a function which deals with only positive numbers . The behavior of the function is pretty much the same

It will be easier to understand trends using these graphs and functions Predicting its future values is easy enough because you only have to use simple algebra to obtain a value of y for a value of x . If you can fit in your financial trends to one of these graphs your job is a lot easier than you thought

Reference

Leithold , L (1990 ) The calculus with analytic geometry . Pearson

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Different Equations...