Khaleej Times)Petrol prices in the UAE have jumped over 56 per cent since January 2022 due to an increase in global crude oil prices, especially after the Russia-Ukraine war in February. On Tuesday, the UAE increased Special 95 petrol price by over 13.5 percent to Dh4.03 per liter for June as compared to Dh3.55 in May.
Suppose inflation on Special 95 price continues at 13.5 percent monthly.
Let an = the value (that is, the purchasing power) of one dirham after n months.
(a) Find a recurrence relation for an .
(b) What is the value of Dh1.00 after ½ year?
(c) What is the Special 95 petrol price per liter in September 2022?