document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1140502>Question 1140502</A>: <I><SPAN STYLE=\"word-break: break-all;\"> The function C(t)=C(1+r)t models the rise in the cost of a product that has a cost of C today, subject to an average yearly inflation rate of r for t years.  If the average annual rate of inflation over the next 2 years is assumed to be 3.5%, what will the inflation-adjusted cost of a $122,800 boat be in 2 years?  Round to two decimal places. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #761031 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=761031\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> I think the formula should be C(t)=C(1=r)^t<BR>\n" );
document.write( "if that is the case, C(2)(=C(1.035)^2=1.071225, and the boat would be $122,800*1.071225=$131,546.43\r<BR>\n" );
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document.write( "If linear, then it would be 1.07*122800=$131,396.  Inflation inflates itself, so the first result should be the correct one. </SPAN>\n" );
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