Question

Find the current price of the item and the price 10 years from today. Round your answer to the nearest dollar as necessary.

Answer 1

Given the function

`p(t)=800(1.039)^t`

t= number of years from today

The current price (t=0) is

`p(0)=800(1.039)^0`
`p(0)=800*1`
`p(0)=800`

Current price= 800

Price 10 years from today (t=10)

`p(10)=800(1.039)^(10)`
`p(10)=1172.85`

rounded to the nearest dollar the price in 10 years from today

p(10) = 1173