Q1. The equations R = 0.523(1.068)x and S = 0.664(1.055)x can be used to approximate the annual receipts R and spending S of a firm in trillions of dollars for the past two decades. The value x = 0 corresponds to the year 1980. Use these equations to predict the budget surplus in the year 2007.

Guest Apr 27, 2017

#1**0 **

Starting with 1980 being year 0, 2007 will be year 27 (because 2007 - 1980 = 27).

Surplus is found by subtacting spending (S) from receipts (R).

You need to use a calculator to find these two values:

R = 0.523(1.068)^{27} and S = 0.664(1.055)^{27}

and subtract the value for S from the value for R.

geno3141 Apr 28, 2017