Question

Using the equation, y=10000(0.97)x predict the purchasing power of $10000 ten years later

Answer 1

Using the equation, y= 10,000(0.97)^ , predict the purchasing power of $10,000 ten years later.
$7374

Answer 2

The purchasing power is $7374

Explanation:

We are given an equation
`y=10000(0.97)^x`

where,

y represents purchasing power.

x represents the number of years.

We need to find purchasing power of $10000 after 10 years.

Put x=10 into equation and solve for y

`y=10000(0.97)^(10)`

`y=7374.24\approx 7374`

After 10 years the purchasing power of $10000 becomes $7374

As we can see the value of the product decrease.

Hence, The purchasing power is $7374