If major reform had occurred in the Social Security system, individuals would have invested some of their contributions into individual accounts. These accounts would be managed by financial firms, which often charge fees. The table lists the amount in billions of dollars that would be collected if fees were 0.93% of the assets each year.

(a) Use exponential regression to find a and b so that f(x) = ab^x models the data x years after 2000. 

(b) Graph  and the data. 

(c) Estimate the possible fees in 2018. Round to the nearest ten billion dollars. 

(d) Did your answer involve interpolation or extrapolation?

Transcribed Image Text:

Year 2005 20 Fees ($ billions) 2010 2015 2020 41 80 136