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22 August, 10:05

The rate of inflation is 3%. The cost of an item in future years can be found by iterating the function c (x) = 1.03x. Find the cost of a $1500 refigerator in three years if the rate of inflation remains consistant.

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  1. 22 August, 10:32
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    This is an expontential growth, which is a growth based on f (x) = b*a^x

    b = 1500

    a = 1.03

    x = 3

    f (3) = 1500*1.03^3 = 1639.10$

    After three years the fridge would cost 1639.1$.
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