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If the rate of inflation is 3.7% per year, the future price p(t) (in dollars) of a certain item can be modeled by the following exponential function, where t is the number of years from today.p(t)=800(1.037)^tFind the current price of the item and the price 10 years from today. Round your answers to the nearest dollar as necessary.

Sagot :

The current price of the item is calculated to be $800 and the price after 10 years is calculated to be $1150.4 if the rate of inflation is 3.7% per year

Since the equation for the future value, in this case, is given as;

p(t)=800(1.037)^t

and t represents the number of years;

We can calculate the current price by substituting t = 0 in the equation as follows;

p(0) = 800(1.037)^0

p(0) = $800

Similarly, the price 10 years from today can be determined by substituting t = 10 as follows;

p(10) = 800(1.037)^10

p(10) = 800 × 1.438

p(10) = $1150.4

Hence the $800 is calculated to be the current price of the item and $1150.4 is calculated to be the price of the item 10 years from today.

To learn more about future value; click here:

https://brainly.com/question/24703884

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