Link to Problem
This additional information was given: The debt, as of July 2004, of 7.26 trillion (7.26*1012) dollars.
Y = 1 / .05 * ln(x)
Y = 20 * ln(x)
But I'm confused what I'm solving for. Am I doubling the debt and sticking that in for x?
This additional information was given: The debt, as of July 2004, of 7.26 trillion (7.26*1012) dollars.
Y = 1 / .05 * ln(x)
Y = 20 * ln(x)
But I'm confused what I'm solving for. Am I doubling the debt and sticking that in for x?
The problem is asking the length of time necessary to double the debt. The actual debt is unimportant because doubling is based solely on the rate. the answer would be ln(2)/.05 or you could use the old rule of 72, which is a rough way of estimating the doubling. 72/5 = roughly 14.4 years
Facebook
Twitter