Q. 55

Question

The table that follows describes the activity in a college tuition savings account over four years.Notice that 2008 was a particularly bad year for investing! Let I(t) be the amount by which your account increased or decreased in year t, and let B(t) be the balance of your account at the end of year t.

Year2005200620072008
Deposited\(600\)1200
\(1200
\)1200
Earnings\(10
\)183
\(317
\)-1650
Increase\(610
\)1383\(1517
\)-450
Balance\(610
\)1994
\(1312
\)3061

(a) Describe in your own words how B(t) is the accumulation function of I(t).(b) Plot a step-function graph of I(t), and describe how B(t) relates to the area under graph.(c) What, if anything, can you say about B(t) when I(t) is positive? Negative?     If you had to guess that one of these functions was related to the derivative of other, which one would it be?

Step-by-Step Solution

Verified
Answer

(a). B(t) = I(1) + I(2) + .... + I(t)(b). B(t) is the sum of the areas of the first through tth rectangles.(c). I could be derivative of B.

1Step 1. Given Information
Year2005200620072008
Deposited
$600$1200
$1200
$1200
Earnings$10
$183
$317
$-1650
Increase$610
$1383
$1517
$-450
Balance$610
$1994
$3512
$3061

Where I(t) is increased or decreased amount in the amount andB(t) is the balance of the amount at the end of the year.

2Step 2. Solution (a) : How B(t) is accumulation graph of I(t).

From the table, it is seen that the balance B(t) is the sum of the increase in any year t.So,B(t) = I(1) + I(2) + .... + I(t)Therefore, we can say that B(t) is accumulation graph of I(t).

3Step 3. Solution (b) : How B(t) relates to the area under graph

B(t) is the sum of the areas of the first through tth rectangle.

4Step 4. Solution (c) : About B(t) when I(t) is negative or positive.

From table, B will increase when I is positive and decrease when I(t) is negative.

Therefore, we can say that I could be derivative of B.