Question

The rate of inflation is 3% . The cost of an item in future years can be found by iterating the function c(x) = 1.03x. Find the cost of a $1500 refrigerator in three years if the rate of inflation remains consistent .


********PLEASE HELP********

Answer 1

This is the concept of business mathematics, given an inflation rate of 3%, that has modeled the price of items using the function c(x)=1.03x, the cost of the refrigerator in 3 years will be as follows;
cost after 1 year:
c(1)=1.03*1500
=1545
cost after 2 years
c(2)=1.03*1545
=1591.35
the cost after 3 years will be:
c(3)=1.03*1591.35
=$1,639.09