Question

I have an exponential growth / decay question. please help

Answer 1

when it says with an inflation rate of 5% per year what do i need to do ?

Answer 2

1.05^number of years

Answer 3

that didnt work , i tried it

Answer 4

what is the question?

Answer 5

Let y = 20,000(0.95)x represent the buying power of $20,000 with an inflation rate of 5% per year. The table below represents the first 4 years later. Which year is incorrect?

Answer 6

x- 1, 2, 3 ,4
y- 19,100- 18050-17148-16290

Answer 7

x- is years later
y- purchasing power

Answer 8

well they have given you the entire formula. you literally only have to plug in x values. For x=1 you get \[20000(0.95)^1=20000(0.95)=19000\ne19100\]

Answer 9

i understand the formula , 20,000(.95)^x so you do 20,000 to the x power multiplied by (.95) . but i dont understand what i have to do to the formula when it says with an inflation of 5% per year ?

Answer 10

inflation rate of 5% per year "

Answer 11

this is already given in the forumla. Inflation means that the buying power of your dollar decreases. your buying power decreases by 5% so 1-0.05=0.95