122k views
1 vote
The rate of inflation is 3% . The cost of an item in future years can be found by iterating the function c(x) = 1.03x. Find the cost of a $1500 refrigerator in three years if the rate of inflation remains consistent .

********PLEASE HELP********

User Pasi H
by
7.5k points

1 Answer

4 votes
This is the concept of business mathematics, given an inflation rate of 3%, that has modeled the price of items using the function c(x)=1.03x, the cost of the refrigerator in 3 years will be as follows;
cost after 1 year:
c(1)=1.03*1500
=1545
cost after 2 years
c(2)=1.03*1545
=1591.35
the cost after 3 years will be:
c(3)=1.03*1591.35
=$1,639.09
User Heartpunk
by
8.8k points
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