The function defined by A t = 100 e 0.0318 t approximates the equivalent amount of money needed t years after the year 2010 to equal $100 of buying power in the year 2010. The value 0.0318 is related to the average rate of inflation. a. Evaluate A 15 and interpret its meaning in the context of this problem b. Verify that by the year 2032, more than $200 will be needed to have the same buying power as $100 in 2010.
The function defined by A t = 100 e 0.0318 t approximates the equivalent amount of money needed t years after the year 2010 to equal $100 of buying power in the year 2010. The value 0.0318 is related to the average rate of inflation. a. Evaluate A 15 and interpret its meaning in the context of this problem b. Verify that by the year 2032, more than $200 will be needed to have the same buying power as $100 in 2010.
Solution Summary: The author calculates the equivalent amount of money needed after 15years if the function A(t)=100e0.0318t
The function defined by
A
t
=
100
e
0.0318
t
approximates the equivalent amount of money needed t years after the year 2010 to equal
$100
of buying power in the year 2010. The value 0.0318 is related to the average rate of inflation.
a. Evaluate
A
15
and interpret its meaning in the context of this problem
b. Verify that by the year 2032, more than
$200
will be needed to have the same buying power as
$100
in 2010.
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