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Yanka [14]
3 years ago
7

describe how to find the price of a blender 3 years from now the inflation is constant at 4% and the the blender costs 38$ today

Mathematics
1 answer:
Ludmilka [50]3 years ago
5 0
FV =  PV / (1 +r)^n

Where FV = Future Value,  PV = Present Value, r = inflation rate in %,
n = number of years.

PV = $38, r = 4%, n = 3 years.

FV =    38 / (1 + 4%)^3

      =   38 / (1 + 0.04)^3

      =     38 / (1.04)^3 =    33.782

Hence the value 3 years from now = $33.78    
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