Answer:
The cost in 2015 will be $283.45.
What is the reference point (t=0)?
d. The year 2005.
Step-by-step explanation:
The exponential growth model for the cost is the following:
In which C(t) is the cost after t years, is the initial cost and r is the decimal inflation rate
In this problem, we have that:
What will it cost in 2015 assuming the rate of inflation remains constant?
2015 is 10 years after 2005, so this is C(10).
The cost in 2015 will be $283.45.
The reference point is the year in which t = 0, so the year 2005.