1 Answer

Gusman · Answer 1 · 2023-01-24T23:15:36+0000

Solution:

Given that;

The initial price of bushel of wheat is $3.52 and due to increased agricultural costs, the price of bushel of wheat increased by the rate of 1.7%

To find the function that represents the price of bushel wheat after years, we will apply the exponential growth formula

Where

$\begin{gathered} a\text{ is the initial price} \\ r\text{ is the growth rate } \\ t\text{ is time in years} \end{gathered}$

And

$\begin{gathered} a=3.52 \\ r=(1.7)/(100)=0.017 \\ t=t \end{gathered}$

Substitute the values of a, r and t into the formula of exponential growth above

$\begin{gathered} f(t)=3.52(1+0.017)^t \\ f(t)=\text{\$3.52}(1.017)^t \end{gathered}$

Thus, the function is

$f(t)=\operatorname{\$}\text{3.52}(1.017)^t$

The answer is option B

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