Question

Y=10,000(0.97)x predict purchasing power of $10,000 ten years later

Answer 1

It will be $7602.3

Explanation:

The equation
`y = 10000(0.97)^(x)` gives the purchasing power of $10000 after x years.

Therefore, the sum of money $10000 will value
`10000(0.97)^(x)` after x number of years.

Now, after 9 years i.e. x = 9 years, the sum value of $10000 will become
`y = 10000(0.97)^(9) = 10000 * 0.76023 = 7602.3` dollars. ( Answer )