Question

Inflation Rates With an annual rate of inflation of 4% over the next 10 years,the approximate cost C of goods or services during any year in the decade is given by

c(t) = p(1.04)t, 0 ≤ t -≤ 10
Where t is the time (in years) and p is the present cost.The price of an oil change for a car is presently $24.95.Estimate the price 10 years from now.

Answer 1

$259.48

Explanation:

As the question states that the cost of goods and services during any year in the decade is given by :

c(t) = p(1.04)t, 0 ≤ t -≤ 10

To calculate the price of an oil change for a car in ten years, we have to use the formula and replace p with the price of the oil change today that is $24.95 and t that is time in years with 10:

c(t)= $24.95*(1.04)*10

c(t)= $259.48

The price 10 years from now will be $259.48.