Concept explainers
The monthly costs for a small company to do business has been increasing over time due in part to inflation. The table gives the monthly cost y (in $) for the month of January for selected years. The variable t represents the number of years since 2016.
Year (t = 0 is 2016) | Monthly Costs ($) y |
---|---|
0 | 12,000 |
1 | 12,400 |
2 | 12,800 |
3 | 12,800 |
a. Use a graphing utility to find a model of the form
b. Write the function from part (a) as an exponential function with the base e.
c. Use either model to predict the monthly cost for January in the year 2023 if this trend continues. Round to the nearest hundred dollars.
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