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The simple interest formula says that if $1,000 is invested at 7.5% (r=0.075), then A=75t+1000, t>=0. (A) What will $1,000 amount to after 5 years? After 20 years? (B) Sketch a graph of A=75t+1000 for t between 0 and 20. (C) Find the slope of the graph and interpret verbally.

The simple interest formula says that if $1,000 is invested at 7.5% (r=0.075), then A=75t+1000, t>=0.
(A) What will $1,000 amount to after 5 years? After 20 years?
(B) Sketch a graph of A=75t+1000 for t between 0 and 20.
(C) Find the slope of the graph and interpret verbally.

Solution Summary

This solution is comprised of a detailed explanation to answer:
(A) What will $1,000 amount to after 5 years? After 20 years?
(B) Sketch a graph of A=75t+1000 for t between 0 and 20.
(C) Find the slope of the graph and interpret verbally.

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