Question
a) The annual inflation rate is 3.5% per year. If a movie ticket costs $7.50, find a formula for p, the price of the tickets t years from today, assuming that movie tickets keep up with inflation.
b) According to your formula, how much will movie tickets cost in 20 years?
b) According to your formula, how much will movie tickets cost in 20 years?
Answers
Steve
p(t) = 7.50 * 1.035^t
p(20) = 14.92
p(20) = 14.92