SOLUTION: The inflation rate is 3.5% each year. If the cost of car is $10,000, find a function c(t) that gives cost of the car t years from now.

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Question 62666: The inflation rate is 3.5% each year. If the cost of car is $10,000, find a function c(t) that gives cost of the car t years from now.
Found 2 solutions by josmiceli, uma:
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
In t years the increase in cost due to inflation
is 10000*.035*t
The cost of the car will be what it costs now
plus the increase in cost
C+=+10%5E4+%2B+10%5E4+%2A+.035t
C+=+10%5E4%281+%2B+.035t%29 answer

Answer by uma(370) About Me  (Show Source):
You can put this solution on YOUR website!
Cost of the car = $10,000
Inflation rate = 3.5%
= 0.035
cost of the car in the next year = 10,000* (1.035)
That is cost of the car 1 year from now = 10000*(1.035)^1
==> cost of the car t years from now = 10000*(1.035)^t
c(t) = 10,000*(1.035)^t

Good Luck!!!