Question

With a yearly inflation rate of 5%, prices are given by P= Po(1.05)^t where Po is the price in dollars when t=0 and t is time in years. suppose Po=1. How fast (in cents/years) are prices rising when t=10?

Answer 1

the derivative of
\[(1.05)^t\] is
\[(1.05)^t\ln(1.05)\] replace t by 10 to get your answer

Answer 2

thanks

Answer 3

yw