Problem

The economy of the United States depends heavily on borrowed money. Businesses borrow to...

The economy of the United States depends heavily on borrowed money. Businesses borrow to expand, and individuals borrow to buy cars, houses, and to pay for college education among many other things. Based on data from 1995 through 2009, the following linear equation approximates the total annual consumer debt of the United States.

y = 0.11x + 1.08

where x = the number of years since 1995 (x = 0 for 1995) and y = the total consumer debt in trillions of dollars.

(a) Use the equation to find the approximate consumer debt for 2005. The actual amount is $ 2.20 trillion.

(b) Find the estimated consumer debt for 2012, 2015, and 2020.

(c) Find the year when the consumer debt is estimated to reach $4 trillion.

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