Answer:
- $1500
- $15,510
Step-by-step explanation:
Current Price:
Since t is then number of years from today, to find the current price, t would equal 0 years from today. Substitute 0 for t:
[tex]p(t) = 1500(1.034)^{0}[/tex]
Anything to the 0 power equals 1, so:
[tex]p(t)=1500(1)[/tex]
Thus, the current price of the item is $1,500.
Price 10 Years From Now:
Similarly, t represents the number of years from today. And since we want to calculate the price 10 years from now, 10 would be substituted for t.
[tex]p(t)=1500(1.034)^{10}[/tex]
Now solve:
[tex](1.034)^{10}[/tex] is a decimal number, but the instructions say to round to the nearest dollar so you can round this decimal number to the nearest whole number:
[tex]p(t)=1500(1)[/tex]
10 years from now, the price of the item remains at $1,500
