Question

The rate of inflation is 3%. The cost of an item in future years can be found by iterating the function c(x)=1.03x. Find the cost of a $1500 refrigerator in three years if the rate of inflation remains constant.

Answer 1

1500 * 1.03 * 1.03 * 1.03 = 1500 * 1.03^3

Google compound interest.

Answer 2

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