Answer:
The x-int.s are (2, 0) and (4, 0) so the midpoint will be (3, 0).
The interest would be $8,093.75
The income that you can save from each biweekly paycheck is
.. $1626 -6.2%*1626 -1.45%*1626 -85 -225 -775 = $416.61
After 14 pay periods, you will have saved
.. 14*$416.61 = $5832.54
This is more than your estimated trip requirement.
c. $5833; yes
Ted:
4,000 @ 4.5% interest compounded annually
Alan:
1,000 @ 6% interest compounded annually
Rule of 72: divide 72 by the compound annual interest rate
Ted: 72/4.5% = 16 years
Alan: 72/6% = 12 years
<span>Alan will win. It will take 12 years.</span>
