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andrew11 [14]
2 years ago
6

James is contemplating an investment opportunity represented by the function A(t)=P(1.06)t, where P is the initial amount of the

investment, and t is the time in years. If James invests $5000, what is the average rate of change in dollars per year (rounded to the nearest dollar) between years 15 and 20?
Enter your answer as a number, like this: 42
Mathematics
1 answer:
Advocard [28]2 years ago
7 0

Answer:

Rate of change per year = $5300

Step-by-step explanation:

Step 1: Substitute the variable P for the invested amount

    1. A(t) = 5000(1.06)t

    2. A(t) = (5300)t

Step 2: Substitute the variable t for the first 15 years

    1. A(15) = (5300)(15)

    2. A(15) = 79,500

Step 3: Substitute the variable t for the 20 years

    1. A(20) = (5300)(20)

    2. A(20) = 106,000

Step 4: Find your two ordered pairs and relation

    First ordered pair: (15, 79,500)

    Second ordered pair: (20, 106,000)

    Relation: {(15, 79,500), (20, 106,000)}

Step 5: Find the slope or rate of change between 15 and 20 years

    Let (y₁, x₁) = (15, 79,500)

   

    Let (y₂, x₂) = (20, 106,000)

    1. Use the slope expression: y₂ - y₁/x₂ - x₁

    2. Substitute the correct values into the expression:

         106,000 - 79,500/20 - 15

    3. Simplify: 26500/5 = 5300

    4. Hence, the rate of change in dollars per year is $5300

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