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Inflation is an example of exponential growth.  If inflation is about 4% each year,...

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kristenmarieb... | Student, Grade 10 | Valedictorian

Posted August 10, 2013 at 4:44 PM via web

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Inflation is an example of exponential growth.  If inflation is about 4% each year, and the price of a pair of jeans is $30 now, the price of the same jeans x years from now will be:  P = 30(1.04)^x

What will the jeans cost 10 years from now?  Use a calculator to evaluate, and round to the nearest penny.

                                     

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justaguide | College Teacher | (Level 2) Distinguished Educator

Posted August 10, 2013 at 4:47 PM (Answer #1)

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Inflation is an example of exponential growth.  The rate of inflation is about 4% each year, and the present price of a pair of jeans is $30. After x years the price of the pair of jeans is P = 30*(1.04)^x

The price of the pair of jeans after after 10 years is 30*1.04^10 = 44.41

The pair of jeans costs $44.41 after 10 years.

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