Homework Help

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

Student

Valedictorian

• Up
• 1
• Down

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.

Posted by kristenmariebieber on August 10, 2013 at 4:44 PM via web and tagged with algebra2, math

College Teacher

(Level 2) Distinguished Educator

• Up
• 1
• Down

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.

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