The function C(t) = Co(1 + r)' models the rise in the cost of a product that has a cost of Co today, subject to an average yearly inflation rate of r for t years. If the average annual rate of inflation over the next 5 years is assumed to be 2.5 %, what will the inflation-adjusted cost of a $189 bicycle be in 5 years? Round to two decimal places.

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The function C(t) = Co(1 + r)' models the rise in the cost of a product that has a cost of Co today, subject to an average yearly inflation rate of r for t years. If the
average annual rate of inflation over the next 5 years is assumed to be 2.5 %, what will the inflation-adjusted cost of a $189 bicycle be in 5 years? Round to two
decimal places.
Transcribed Image Text:The function C(t) = Co(1 + r)' models the rise in the cost of a product that has a cost of Co today, subject to an average yearly inflation rate of r for t years. If the average annual rate of inflation over the next 5 years is assumed to be 2.5 %, what will the inflation-adjusted cost of a $189 bicycle be in 5 years? Round to two decimal places.
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