# 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 =...

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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Expert Answers

justaguide | Certified Educator

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.**