Jack and jill each inherit $1200, they do the following with this money:
Jack and Jill each inherit $1200.
Jack invests $1000 of this money and spends the rest. He anticipates that the value of
this investment will grow by approximately 8% per year.
Jill purchases a motor boat for her $1200. The boat will lose approximately 5% of its
value per year.
a) Write exponential equations for these situations where y is the amount in dollars over x
years. (3 pts.)
Jack’s investment value equation: Jill’s motor boat value equation:
b) How long will it take for Jack’s investment to grow to $1200? (2 pts.)
c) Determine when the two equations from part (a) intersect and explain the meaning of
this intersection point in terms of Jack and Jill’s investments. (3 pts.)