Question

The exponential regression equation y=307.60(1.11)^x models the dollar value of a retirement fund after x years. Which is best estimate for the value of the retirement fund after 6 years, if no additional deposits or withdrawals are made. ?
A. $310

B. $580

C. $1,880

D. $2,050

Answer 1

Answer:

B. $580 is best estimate for the value of the retirement fund after 6 years, if no additional deposits or withdrawals are made.

Thus it is little close to answer because actual answer is $575.34.

Answer 2

Answer:

B. $580

Step-by-step explanation:

Value of the retirement fund after x years:

The value of the retirement fund after x years is given by the following function:

$y(x) = 307.6(1.11)^x$

Which is best estimate for the value of the retirement fund after 6 years, if no additional deposits or withdrawals are made?

This is y(6). So

$y(6) = 307.6(1.11)^6 = 575.34$

Close to $580, and thus, the correct answer is given by option B.