SOLUTION: The cash flow for the Timberland Co. was $1.21 in 1999 and $1.46 in 2007. (a) Determine a linear cost function C(t) that gives the cash flow per share as a function of the year. L

Algebra ->  Functions -> SOLUTION: The cash flow for the Timberland Co. was $1.21 in 1999 and $1.46 in 2007. (a) Determine a linear cost function C(t) that gives the cash flow per share as a function of the year. L      Log On


   

Question 1052572: The cash flow for the Timberland Co. was $1.21 in 1999 and $1.46 in 2007.
(a) Determine a linear cost function C(t) that gives the cash flow per share as a function of the year. Let t=9 represent 1999.
(b) Use your model from part (a) to predict cash flow in the year 2016.
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
If +t+=+9+ is the year 1999, then
+t+=+0+ is 1990
You are given the points
( 9, 1.21 )
( 17, 1.46 )
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Use the general point-slope formula
+%28+C+-+1.21+%29+%2F+%28+t+-+9+%29+=+%28+1.46+-+1.21+%29+%2F+%28+17+-+9+%29+
+%28+C+-+1.21+%29+%2F+%28+t+-+9+%29+=+.25+%2F+8+
+%28+C+-+1.21+%29+%2F+%28+t+-+9+%29+=+1+%2F+32+
Multiply both sides by +32%2A%28+t-9+%29+
+32%2A%28+C+-+1.21+%29+=+t+-+9+
+32C+-+38.72++=+t+-+9+
+32C+=+t+%2B+29.72+
+C+=+%281%2F32%29%2At+%2B+.92875+
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check the answer:
does the line go through ( 17, 1.46 )
+C+=+%281%2F32%29%2At+%2B+.92875+
+1.46+=+%281%2F32%29%2A17+%2B+.92875+
+1.46+=+.53125+%2B+.92875+
+1.46+=+1.46+
( you can check the other point )
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year = 2016
+t+=+26+
+C+=+%281%2F32%29%2At+%2B+.92875+
+C+=+%281%2F32%29%2A26+%2B+.92875+
+C+=+.8125+%2B+.92875+
+C+=+1.74125+
Cash flow is $1.74
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check my math!