contestada

Assuming that the annual rate of inflation averages 4% over the next 10 years, the approximate costs С of goods or services during any year in that decade will be modeled by C(t) = P(1.04)’. where t is the time in years and P is the present cost. The price of an oil change for your car is presently $23.95. Estimate the price 10 years from now.

Respuesta :

tutorconsortium644

By using the provided formula of inflation , The answer is $35.35.

What do you mean by inflation?

The rate at which consumer prices for a variety of products and services are increasing is known as inflation.

What is the ways for measuring inflation?

The common ways followed are:

  • The Consumer Price Index (CPI)
  • CPI, less food and energy.
  • Personal Consumption Expenditures (PCE)
  • Personal Consumption Expenditures excluding food and energy or “Core PCE”

[tex]C(t) = P(1.04)^{t}[/tex]

P= $23.95

t=10

The estimated price is [tex]23.95*(1.04)^{10}[/tex]

=$35.35

To learn more about inflation rate visit:

https://brainly.com/question/29308595

Otras preguntas