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Sidana [21]
3 years ago
11

From 1992 through 2007, the purchasing power of a dollar decreased by about 3.5% per a year. Using 1992, as the base for compari

son, what was the purchasing power of a dollar in 2007? Formula: y=C(1−r)t
$0.48
$0.57
$0.44
$0,59
Mathematics
1 answer:
Fed [463]3 years ago
8 0
<span>Answer: fourth option $0.59

Explanation:

1) Given formula: y=C(1−r)^t

I will change t for x just due to editor limitations: y = C(1-r)ˣ

2) In that:

C =$1,
r = 3.5% = 3.5/100 = 0.035
x = t = 2007 - 1992 = 15

3) Compute

y = $1 (1 - 0.035)¹⁵ = $1 (0.965)¹⁵ = $0.586 ≈ $0.59

Answer: $0.59
</span>
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