Module 6: Lesson 1

 

Self-Check 2
  1. Question 11 on page 344 of the textbook
    1.  
      1. Graph the function A = 1(1.0175)n.

         
        This is a graph of the function of the amount of money, A, equals ones times 1.0175 to the exponent n where n is the number of years the money is invested.

      2. The initial deposit is $1, so the tripled deposit would be $3. The graph indicates that when the deposit will be $3, it will take approximately 64 yr for the deposit to triple.

      3. No, the time it takes for the deposit to triple does not depend on the initial deposit. No matter what the initial deposit is, it will still take approximately 64 yr to triple.

      4. Using the rule of 72 shows

         



        The graph also indicates that it will take approximately 41 yr for the deposit to double to $2.


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