Question

Chapter 1, Section 1.1, Question 038 The following table gives A = the amount of money in bills of denomination d crculating in US currency in 2013.1 For example, there were $74.5 billion worth of $50 bills in circulation. Denomination (S)2 5102050 100 Circulation (Sbn) 10.6 2.1 12.7 18.5 155.074.5 924.7 (a) Find f (20). What does this tell you about money? (20)- There is approximately in circulation in the United States. (b) Are there moe $1 bills or $5 bills in circulation? There are more bills in circulation. http://www.federalreserve.gov/paymentsystems/coin_currcircvalue.htm, accessed February 16, 2014.

Answer 1

a)The value of f(20) from the table is 155.0

ans: $f(20)=155.0$

There is approximately $155.0 billion worth of $20 bills in circulation.

This shows that $20 is one of the popular bills used in transactions. The amount transacted using $20 bills is next only to $100, which is the most popular bill (in terms of amount transacted) used for transaction.

b) The value of f(1) =10.6. This means that there is $10.6 billion worth of $1 bills in circulation.

We can find the number of $1 bills in circulation by dividing the value of $1 bills by 1.

$\text{number of \$1 bills in circulation}=\frac{\text{Total worth of \$1 bills}}{1}=\frac{10.6}{1}=10.6$

number of $1 bills in circulation in 2013 is 10.6 billion

The value of f(5) =12.7. This means that there is $12.7 billion worth of $5 bills in circulation.

We can find the number of $5 bills in circulation by dividing the value of $5 bills by 5.

$\text{number of \$5 bills in circulation}=\frac{\text{Total worth of \$5 bills}}{5}=\frac{12.7}{5}=2.54$

number of $5 bills in circulation is 2.54 billion

Ans: There are more $1 than $5 bills in circulation