Question

If the rate of Inflation is 2.6% per year, the future price p (1) (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) = 600(1.026)'
Find the current price of the item and the price 10 years from today.
Round your answers to the nearest dollar as necessary.

Answer 1

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Answer:

• current price: $600
• in 10 years: $776

Step-by-step explanation:

To find today's price, use t=0.

  p(t) = 600(1.026^t)

  p(0) = 600(1.026^0) = 600(1) = 600

The current price is $600.

__

To find the price in 10 years, use t=10.

  p(10) = 600(1.026^10) ≈ 600(1.29263) ≈ 775.58

The price 10 years from today is modeled as $776.