Question

Using the equation, y=10000(0.97)x predict the purchasing power of $10000 ten years later

Answer 1

 Using the equation, y= 10,000(0.97)^ , predict the purchasing power of $10,000 ten years later. 
$7374

Answer 2

Answer:

The purchasing power is $7374

Step-by-step explanation:

We are given an equation $y=10000(0.97)^x$

where,  

y represents purchasing power.

x represents the number of years.

We need to find purchasing power of $10000 after 10 years.

Put x=10 into equation and solve for y

$y=10000(0.97)^{10}$

$y=7374.24\approx 7374$

After 10 years the purchasing power of $10000 becomes $7374

As we can see the value of the product decrease.

Hence, The purchasing power is $7374