Exponential Growth and Decay A Ponzi Scheme A shady broker offers a dubious investment opportunity. In week 0, he sells a $11,000 note promising to repay $11,500 in one week. In week 1, he sells two such notes and uses to proceeds to pay off the week 0 investor. In week 2, he sells 4 notes and pays off week one investors. Each week, he sells twice many notes as the week before and uses the proceeds to pay off last week’s investors. An investment scam of this sort is known as a Ponzi scheme. a) How many notes did the broker sell in week 10? b) What was the total number of notes sold by week 10? c) How much money was collected by week 10? d) How much money was paid out by week 10? e) In week 10, the broker took his profits and left the country. How much money was the loss of the investors? The table below will help you to organize your work. Complete the table and write a paragraph discussing the situation. Note: By week 10 means all weeks, starting from 0 to 10 including. Week Sell Notes Money Paid Notes Money 0 1 1*11,000 0 0 1 2 2*11,000 1 1*11,500 2 3 4 5 6 7 8 9 10
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
Exponential Growth and Decay
A Ponzi Scheme
A shady broker offers a dubious investment opportunity. In week 0, he sells a $11,000 note promising to repay $11,500 in one week. In week 1, he sells two such notes and uses to proceeds to pay off the week 0 investor. In week 2, he sells 4 notes and pays off week one investors. Each week, he sells twice many notes as the week before and uses the proceeds to pay off last week’s investors. An investment scam of this sort is known as a Ponzi scheme.
a) How many notes did the broker sell in week 10?
b) What was the total number of notes sold by week 10?
- c) How much money was collected by week 10?
- d) How much money was paid out by week 10?
- e) In week 10, the broker took his profits and left the country. How much money was the loss of the investors?
The table below will help you to organize your work.
Complete the table and write a paragraph discussing the situation.
Note: By week 10 means all weeks, starting from 0 to 10 including.
|
Week |
Sell Notes Money |
Paid Notes Money |
||
|
0 |
1 |
1*11,000 |
0 |
0 |
|
1 |
2 |
2*11,000 |
1 |
1*11,500 |
|
2 |
|
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|
|
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3 |
|
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4 |
|
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5 |
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6 |
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7 |
|
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|
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|
8 |
|
|
|
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|
9 |
|
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10 |
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