Answer:
The inflation-adjusted cost of the house is $166,548.11
Explanation:[tex]\begin{gathered} The\text{ funcion the inflation adjusted cost:} \\ C(t)\text{ = C}_0(1\text{ + r\rparen}^t \\ r\text{ = rate} \\ \text{t = time} \\ C_0\text{ = cost of product} \end{gathered}[/tex][tex]\begin{gathered} From\text{ the information in the question:} \\ C_0\text{ = cost of house =\$154600} \\ r\text{ = 1.5\% = 0.015} \\ t\text{ = 5 years} \\ C(t)\text{ = ?} \\ We\text{ need to find the inflation adjusted cost using the function we were given in the question} \end{gathered}[/tex]
substitute the values into the formula:
[tex]\begin{gathered} C(t)\text{ = 154600\lparen1 + 0.015\rparen}^5 \\ C(t)\text{ = 154600\lparen1.015\rparen}^5 \\ C(t)\text{ = 166548.107} \\ \\ To\text{ 2 decimal place, C\lparen t\rparen = 166548.11} \end{gathered}[/tex]
The inflation-adjusted cost of the house is $166,548.11
