69.1k views
0 votes
If the rate of inflation is 3.7% per year, the future price pt (in dollars) of a certain item can be modeled by the following exponential function, where t is the number of years from today. =pt400( 1.037)t Find the current price of the item and the price 8 years from today. Round your answers to the nearest dollar as necessary.

2 Answers

4 votes
well, for the current price today, let's see, not even one day has passed, to we don't have a "t" value that's greater than 0, so since today 0years and 0days and 0seconds have passed, t =0


\bf p(t)=400(1.037)^0\implies p(t)=400\cdot 1\implies \boxed{p(t)=400}

now, 8 years from now, well, 8 years would had passed by then, t = 8


\bf p(t)=400(1.037)^8\implies p(t)\approx 400\cdot 1.3373037\implies \boxed{p(t)\approx 535}
User YDL
by
8.1k points
7 votes
P (t)=400 (1.037)^t
The current price is 400

The price 8 years from today is
P (8)=400×(1.037)^(8)=534.9 round your answer to get 535
User Sagar Gangawane
by
9.0k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories