In problems 16-20, calculate the expected price in the year 2008 if you assume that there was a consistent 5% inflation rate and use the given 1988 price. answers should be rounded to the nearest penny. 16. median salary, $27,225 17. gallon of gas, $1.08 18. dozen eggs, $0.89 19. movie admission, $3.50 20. mcdonalds hamburger, $0.62
Accepted Solution
A:
16. 72236.03 17. 2.87 18. 2.36 19. 9.29 20. 1.65 The exponential growth formula is as follows [tex]y=a(1+r)^{x}[/tex]: a is initial value ($27,225 17. gallon of gas, $1.08 18. dozen eggs, $0.89 19. movie admission, $3.50 20. mcdonalds hamburger, $0.62) r is rate of increase (0.05) x is time (2008-1988 = 20 years) to solve plug in values for each one. [tex]y=27225(1+0.05)^{20} = 72236.03[/tex]