
(a)
To find: the function of retirement plan for both options.
(a)

Answer to Problem 40PPS
Thefunctions are
Explanation of Solution
Given information:
The retirement plan of Mrs Jackson is shown as,
The model formula for the ending value at time
For option A,
Substitute
For option B,
Substitute
Substitute
Add the equation (1) and the equation (2).
Therefore, the functions are
(b)
To find: the graph of both the functions.
(b)

Answer to Problem 40PPS
The required graphs are shown in figure (1) and (2).
Explanation of Solution
Given information:
The retirement plan of Mrs Jackson is shown as,
Consider the functions.
Plot the graph of the function
Figure(1)
Plot the graph of the function
Figure(2)
Therefore, the required graphs are shown in figure (1) and (2).
(c)
To find: the best option of retirement plan for Mrs Jackson.
(c)

Answer to Problem 40PPS
The option A is better than the option B.
Explanation of Solution
Given information:
The retirement plan of Mrs Jackson is shown as,
Consider the functions.
As the equation (1) has higher interest rate per dollar of investment than equation (2).
Therefore, the option A is better than the option B.
Chapter 8 Solutions
Algebra 2
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