In: Advanced Math
The numbers used in the Trust Funds Model from this lesson are, of course, just estimates. Let’s investigate what happens if these estimates are off by 10%. To do so, answer the following questions:
Using a starting value of $3 trillion in the trust funds in 2032, with an annual rate of decline of 8.7%, how much money will be in the funds in 2040? The answer is 1448
Now let us assume the starting value of the funds was 10% less and the rate of decline was 10% greater than was estimated in the lesson. What is the estimated value of the trust funds in 2040? I need help with this specific question only. Thanks
Note:- once again I repeat that, here *the annual percentage rate is 10% greater than the previous* means that the numerical value of the rate is increased by 10% as done above. It doesn't mean that (8.7% + 10%)= 18.7%
If there is any mistake. Kindly comment, i will definitely correct myself. Hope this will help you. Thank you.