147k views
1 vote
If the rate of inflation is 2.6% 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) = 3000 (1.026)
Find the current price of the item and the price 8 years from today.
Round your answers to the nearest dollar as necessary.
Current Price:
Price 8 years from today:

User BitExodus
by
8.3k points

1 Answer

6 votes
The current price of the item is simply p(0) = 3000, since we are looking for the price at time t = 0 (the present).

To find the price 8 years from today, we need to evaluate p(8) using the given exponential function:

p(8) = 3000 (1.026)^8

Using a calculator, we get:

p(8) ≈ 3849.87

Rounding to the nearest dollar, we get:

Current Price: $3,000
Price 8 years from today: $3,850

Therefore, the current price of the item is $3,000, and the price 8 years from today is $3,850 (rounded to the nearest dollar).
User Fkoessler
by
8.0k points

No related questions found

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