An economist predicts that the cost of food will increase by 4% per year for the next several years. a. Use the economist's prediction to write an explicit rule for a geometric sequence that gives the cost in dollars of a box of cereal in year n that costs $3.20 in year 1.

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Mathematics

Flakey

17 June, 05:14

An economist predicts that the cost of food will increase by 4% per year for the next several years. a. Use the economist's prediction to write an explicit rule for a geometric sequence that gives the cost in dollars of a box of cereal in year n that costs $3.20 in year 1.

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Shea Hebert · Answer 1

This is the concept of sequences and series. The formula for geometric sequence is:

an=ar^ (n-1)

where:

an=nth term

a=first term

r=common ratio

n=number of terms

thus the formula for the price of food in year n, that has initial price of $3.20 and it is growing at a constant rate of 4% will be given by:

a=$3.20

r=4/100=0.04

hence:

an=3.20 (1+0.04) ^n

an=3.20 (1.04) ^n

The answer is an=3.20 (1.04) ^n

Holly Hunt · Answer 2

If the cost is expected to rise by 4% per year, then that is equivalent to taking the previous year's price and multiplying it by 104%, or 1.04.

So a box of cereal costing $3.20 in year 1 will in year 2 cost $3.20*1.04, in year 3 $3.20*1.04*1.04, and so on. If n is the year, then we are simply multiplying the year 1 cost by n-1 to yield the year n cost.

Expressing this as a geometric sequence, we can say that C (n) = $3.20*1.04^ (n-1) for the cost C in year n.