Exercise are based on the data shown by the graphs.
How well do your answers to Exercises 1 and 2 model the data shown by the graphs?
Exercise 1
In 2004, the system’s income was $575 billion, projected to increase at an average rate of $43 billion per year. In which year will the system’s income be $1177 billion?
Exercise 2
The data for the system’s outflow can be modeled by the formula
where B represents the amount paid in benefits, in billions of dollars, x years after 2004. According to this model, when will the amount paid in benefits be $1177 billion? Round to the nearest year.
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