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real-world applications - MathnMind

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NAME _______________________________________________________ DATE _____________________________________<br />

REAL-WORLD APPLICATIONS<br />

STUDENT ACTIVITY for Transparency 4<br />

Use with Lesson 4-6.<br />

About Interest on the U.S. Public Debt<br />

The government of the United States gets the money to pay its bills by collecting taxes. But<br />

when the country spends more money than it collects in taxes, the government must borrow the<br />

difference to pay its bills. Public debt is like an IOU. This debt scenario is often referred to as<br />

“being in the red” or “red ink.”<br />

As with other kinds of debt, the public debt of the United States accrues interest over the course<br />

of time. The government, and ultimately the taxpayer, is responsible for paying this interest. As<br />

the amount the government borrows increases, the amount of interest increases. Conversely,<br />

when the debt decreases, so does the amount of interest.<br />

The economy is an intricate system affected by many variables, all of them interconnected. Debt<br />

and interest are only two of these variables. The government regulates these and other factors to<br />

maintain a stable economy.<br />

Directions: Use what you have seen and read to answer the following questions.<br />

1. On a separate sheet of paper, graph the data using a line graph displaying x- and y-axes.<br />

See students’ work.<br />

2. Determine the domain, range, and inverse of the graphed relation. The fiscal years comprise<br />

the domain; the interest payments comprise the range. The fiscal years comprise<br />

the range of the inverse; the interest payments comprise the domain of the inverse.<br />

3. Is the graph of these data a linear relation? Why or why not?<br />

on one line.<br />

No; the graphed data do not lie<br />

4. Is the graph of these data a function? Explain. Yes, for each element of the domain, there is<br />

exactly one corresponding element in the range.<br />

Making the Connection<br />

5. If interest on the 2000 public debt of the United States were divided equally among the<br />

281,000,000 people in the United States, what portion would belong to you? Round your answer to<br />

the nearest 100 dollars. $1300<br />

© Glencoe/McGraw-Hill T4 Glencoe Algebra 1

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