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Between 2005 and 2010 the average rate of inflation was about 3.3 percent per year if a cart of groceries cost 150 dollars in 2005 what did it cost in 2010

User Kitra
by
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1 Answer

7 votes

Answer:

The products did cost $173.9 in 2010

Explanation:

Exponential function

Two variables y and x are related as an exponential function if they comply:


F=Cr^(kx)

where C is the initial value of F, r is the ratio, and k is a proportional constant.

The situation described in the question is modeled as


F=Cr^(n)

Where F is the final value of the cart of groceries in 2010, C = $150 is its value in 2005, r is the yearly rate of increase. n is the number of years


\displaystyle r=1+(3\%)/(100\%)= 1.03. So


F=150\ 1.03^(n)

If we set n=5 (from 2005 to 2010):


F=150\ 1.03^(5)


F=\$173.9

The products did cost $173.9 in 2010

User Jaswanth
by
8.3k points
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