College Algebra (10th Edition)

Published by Pearson
ISBN 10: 0321979478
ISBN 13: 978-0-32197-947-6

Chapter 6 - Section 6.7 - Financial Models - 6.7 Assess Your Understanding - Page 476: 56

Answer

${{\$}} 150,819 $ (debt per capita)

Work Step by Step

Debt: $r=0.064, P=17.5$ (trillion), $t= 2030-2014=16, $ compounded $n=1$ times a year: $A_{d}=P\displaystyle \cdot(1+\frac{r}{n})^{nt}=17.5(1+\frac{0.064}{1})^{16\cdot 1}\approx{{\$}} 53.454879 \times 10^{12}$ Population: $A_{p}=357(1+\displaystyle \frac{0.007}{1})^{16\cdot 1}\approx 354.430258\times 10^{6}$ $\displaystyle \frac{A_{d}}{A_{p}}={{\$}} 150,819 $ (debt per capita)
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