Question

If the rate of inflation is3.7% per year the future price p(t)(in dollars) of a certain item can be modeled by the following exponential function where t is the number of years from today

p(t)= 600(1.037^t)
Find the current price of the item and the price 10 years from today
Round your answers to the nearest dollar necessary
Current price :
Price 10 years from today :

Answer 1

Current price : 600
Price 10 years from today :
P (10)=600×(1.037)^(10)=862.86