During the worst periods of hyperinflation in a certain country, the price of food increased at a rate of 20% per month. state whether this increase was linear or exponential. if your food bill was $80 in one month during this period, what was it three months later?

We are given that the current price of the food bill is $80. And the price of food is increasing every month at a rate of 20%. we are required to fnd the price at the end of third month.

Let us evaluate the price at the end of each month

a) P1=P+20% of P

P1=P+0.20P

P1=1.20P

Where P is price at present which is $80 and P1 is the price at end of first month.

Hence P1=1.20 * 80

b) Price at the end of second month

P2=P1+20% of P1

P2=P1+0.20P1

P2=1.20P1

P2=1.20*1.20*80

b) Price at the end of third month

P3=P2+20% of P2

P3=P2+0.20P2

P3=1.20P2

P3=1.20*1.20*1.20*80

Hence

P3=80*(1.20)^3

AS HERE WE CAN SEE THAT WE HAVE EXPONENT TO THE RATE , HENCE THE FUNCTION WILL BE AN EXPONENTIAL FUNCTION.

Also

P3=$138.24

During the worst periods of hyperinflation in a certain​ country, the price of food increased at a rate of 20​% per month. state whether this increase was linear or exponential. if your food bill was ​$80 in one month during this​ period, what was it three months​ later?

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During the worst periods of hyperinflation in a certain country, the price of food increased at a rate of 20% per month. state whether this increase was linear or exponential. if your food bill was $80 in one month during this period, what was it three months later?