An economist predicts that the cost of food will increase by 4% per year for the next several years. Part A: Use the economist's prediction to write an explicit rule for a geometric sequence that gives the cost in dollars of a box of cereal in year n that costs $3.20 in year 1. Part B: What is the fourth term of the sequence, and what does it represent in this situation?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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An economist predicts that the cost of food will increase by 4% per year for the next several years.
Part A: Use the economist's prediction to write an explicit rule for a geometric sequence that
gives the cost in dollars of a box of cereal in year n that costs $3.20 in year 1.
Part B: What is the fourth term of the sequence, and what does it represent in this situation?
5
Transcribed Image Text:An economist predicts that the cost of food will increase by 4% per year for the next several years. Part A: Use the economist's prediction to write an explicit rule for a geometric sequence that gives the cost in dollars of a box of cereal in year n that costs $3.20 in year 1. Part B: What is the fourth term of the sequence, and what does it represent in this situation? 5
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