Isabelle T.

asked • 01/06/21

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.)

1 Expert Answer

By:

Kalydosos K. answered • 01/09/21

Tutor
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Finance and Economics Tutor

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