Question

If the rate of inflation is 2.8% 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) = 1200(1.028)tfind the current price of the item and the price 9 years from today. Round your answers to the nearest dollar as necessary. Current price: _$ Price 9 years from today: _$

Answer 1

`p(t)=1200\cdot1.028^t`

If it's 9 years, then you have to replace t = 9 in the expression that models the price. With that we have the price 9 years from today:

`p(t)=1200\cdot1.028^9=1200\cdot1.282=1538.577`

Rounded to the nearest dollar, the price 9 years from today is $1539

And the current price is the first number of the expression: $1200