Question

The table shows the annual increase in cost in t years for certain grocery items. Based on the formula A = C(1 + r)t, which equation could you use to determine the cost in t years for a loaf of bread?

A) A = 3.60t(1.05)

Eliminate

B) A = 3.60(0.95)t

C) A = 3.60(1.05)t

D) A = 3.60(0.05) t

Answer 1

C is the answer to your question

Answer 2

Option C

Explanation:

Given that there is an annual increase in cost

If rate of increase is r then we have

C(1+r) for I year and for II year C(1+r)^2 etc

Hence for t years

A =
`C(1 + r)^t`

Option A is wrong because exponent t should be for 1.05

Option B is wrong because here 1-r is done instead of 1+4

Option C is correct because r =0.05 and C=3.60 is correctly substituted

Option D is wrong because 1 is not added to r

SO finally only option C is right