At age 25 you start to work and are offered two retirement options.

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Retirement option 1: When you retire, you receive a lump sum of $25,000 for each year of service.
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Retirement option 2: When you start to work, the company will deposit $10,000 into an account that pays a yearly compound interest rate of 13%.
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A: Write a formula that gives your retirement payment , in dollars, if you retire after t years of service under retirement option 1.
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B: Write a formula that gives your retirement payment , in dollars, if you retire after t years of service under retirement option 2.
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C: Make a graph that shows the retirement payment for each option over the 40 years of service.
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D: How many years of service will result in the same payment from either option? (You will work more than 1 year.) Round your answer to two decimal places if necessary.
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What will be an ideal response?


A:

B:

C:

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D: 37.05 years

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