Question

Evaluating anIf the rate of inflation is 2.8% per year, the future price p (t)number of years from today.p(t) = 400(1.028)^tFind the price of the item 4 years from today and 8 years fromRound your answers to the nearest dollar as necessary.Price 4 years from today: LT

Answer 1

p(t) = 400(1.028)^t

To find the price of the item 4 years from today simply replace x =4

p(4) = 400(1.028)^4 = 446.71 = $447

For 8 years:

p(8) = 400(1.028)^8=498.89 =$499