
Steve S. answered 01/21/14
Tutor
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(3)
Tutoring in Precalculus, Trig, and Differential Calculus
a.) A = P (1 + r)^t
A = 45000 (1 + 0.02)^20
A ≈ use you calculator.
b.) A = 45000 (1 + 0.04)^20
$100,000 will maintain (or exceed) their initial standard of living if:
100000 ≥ 45000 (1 + 0.04)^20
100000 ≥ 98600.54
So their standard of living will be slightly better.

Parviz F.
01/21/14