Answer:
The exponential model is: Cost after n years = 400 * (1 + 0.02)ⁿ
Step-by-step explanation:
1. Let's review the information given to us to answer the question correctly:
Cost of the TV set in 1999 = US$ 400
Annual increase rate = 2% = 0.02
2. Write an exponential model to represent this data.
Cost after n years = Cost in 1999 * (1 + r)ⁿ
where r = 0.02 and n = the number of years since 1999
Replacing with the real values for 2020, we have:
Cost after 21 years = 400 * (1 + 0.02)²¹
Cost after 21 years = 400 * 1.5157
Cost after 21 years = $ 606.28
The TV set costs $ 606.28 in 2020.
The exponential model is: Cost after n years = 400 * (1 + 0.02)ⁿ
