1. According to USA Today Research, most pensions for state legislators are based on the product of...
Question:
1. According to USA Today Research, most pensions for state legislators are based on the product of the legislator's years of service, compensation, and a multiplier (usually between 1% and 5%). When the multiplier is 2.5%, a state legislator's pension would be calculated with a formula like the following: "2.5% of average final compensation multiplied by the years of credited service"
Let p represent annual retirement pension, y years of service, and c average final compensation.
(a) For someone with average final compensation of $80,000, write the linear equation that gives p in terms of y.
(b) For someone intending to retire after 30 years, write the linear equation that gives p in terms of c?
2. The projected consumer price index (CPI) for the years 2020 to 2050 can be approximated by a linear equation determined by the line connecting (2020, 120.56) and (2050, 276.05), where the x-coordinate is the year and the y-coordinate is the price consumers pay in year x for goods that cost $100 in 2012.
(a) Write the equation of the line connecting these two points to find a linear model for these data.
(b) Interpret the slope of this line as a rate of change?
Step by Step Answer:
Mathematical Applications for the Management Life and Social Sciences
ISBN: 978-1305108042
11th edition
Authors: Ronald J. Harshbarger, James J. Reynolds