Question

A. Is this an arithmetic sequence? How do you know?

b. How much does the investment grow each year?
c. How much money did the investment start out as?
d. What sequence equation would represent this graph?
e. What would the value of the investment be after another 10 years?
f. What would the value of the investment be after a total of 20 years?

Answer 1

a. Yes. The difference is common and equal to $1750

b. $1750

c. $20000 was initial investment

d. This is linear equation with start point of 20000 and slope of 1750:

• y = 1750x + 20000

e. After another 10 years (on the top of 5 given) the investment will be:

• y = 1750*15 + 20000 = $46250

f. After 20 years the value of investment will be:

• y = 1750*20 + 20000 = $55000