Question

Question 25.Use your calculator to find the value? What does this value indicate to you about money?

Answer 1

ANSWER and EXPLANATION

We want to find the value of f(22) for:

`f(t)=2000\cdot e^(0.05t)`

To do this, substitute 22 for t in the given function. That is:

`\begin{gathered} f(22)=2000\cdot e^(0.05\cdot22) \\ f(22)=2000\cdot e^(1.1) \\ f(22)=6008.33 \end{gathered}`

That is the value of f(22)

As regards investing, this value simply indicates that if an amount of money (e.g. $2000) is invested at an interest rate (e.g. 0.05 or 5%) for a certain period of time (e.g. 22 years), there will be a reasonable increment in the total amount after the time has elapsed.