Question

26. The cost of a television set has increased continuously by 2%. In 1999, the average

Answer 1

Answer:

The exponential model is: Cost after n years = 400 * (1 + 0.02)ⁿ

Step-by-step explanation:

1. Let's review the information given to us to answer the question correctly:

Cost of the TV set in 1999 = US$ 400

Annual increase rate = 2% = 0.02

2. Write an exponential model to represent this data.

Cost after n years = Cost in 1999 * (1 + r)ⁿ

where r = 0.02 and n = the number of years since 1999

Replacing with the real values for 2020, we have:

Cost after 21 years = 400 * (1 + 0.02)²¹

Cost after 21 years = 400 * 1.5157

Cost after 21 years = $ 606.28

The TV set costs $ 606.28 in 2020.

The exponential model is: Cost after n years = 400 * (1 + 0.02)ⁿ