Question

If the rate of inflation is 1.9% per yeta, the future price p(t) in dollars of a certain item can be modeled by the following exponential function, where t is the number of years from today
P(t)=2000(1.019t$
Find the current price of the item and the price 10 years from today.Round answer in nearest dollars

Answer 1

Answer:

P(0) = 2000

P(10) = 2414

Step-by-step explanation:

The price for today is given by P(t) when t=0. Put 0 where t is, and do the arithmetic.

P(0) = 2000·1.019^0 = 2000

The price in 10 years is given by P(t) when t=10. Put 10 where t is, and do the arithmetic.

P(10) = 2000·1.019^10 ≈ 2000·1.207096 ≈ 2414