Question

Let y = 32,000(0.94)x represent the purchasing power of $32,000 with an inflation rate of 6% per year, where x represents the number of years. What is the purchasing power when x = 0?
Answer

$94,000

$30,080

$32,000

$64,000

Answer 1

Do I simplify first orr?

Answer 2

@phi cam you help me?

Answer 3

Thanks for helping phi..

Answer 4

you probably mean
\[ y = 32,000(0.94)^x \]

you should write this with an up arrow to show x is an exponent
y = 32,000(0.94)^x

they want you to replace x with a 0 (that means change x to 0 everywhere you see it in the equation) :
\[ y = 32,000(0.94)^0 \]

now simplify using the important fact that any number to the 0 power is 1

Answer 5

okay give me a sec

Answer 6

Would the answer be 32000?

Answer 7

@phi

Answer 8

@zordoloom is my answer correct sir?

Answer 9

@phi sir I got 32000 for my final answer..

Answer 10

Yes that seems correct.

Answer 11

yes, it is 32000* (.94)^0
but 0.94^0 is 1 so this is just 32000*1= 32000

Answer 12

Thanks guys! (:

Answer 13

Common sense should tell you that inflation after 0 years (right now!) should have no effect... it takes time for the money to lose its value