Question

If the rate of inflation is 4.1% per year, the future price p(t) (in dollars) of a certain item can be modeled by the following exponential function, where t is the number of years from today. p(t)=2500(1.041) Find the current price of the item and the price 8 years from today. Round your answers to the nearest dollar as necessary.​

Answer 1

Answer:

Given function:

• p(t) = 2500(1.041)^t

Current price is:

• p(0) = 2500(1.041)^0 = $2500

Price after 8 years:

• p(8) = 2500(1.041)^8 = $3448 (rounded)