Question

suppose the annual rate of inflation is about 4% this means that the cost of an item increases by about 4%. write and evaluate an exponential expression to find the answer to this question.. if a piano costs $3,500 today, what did it cost 4 years ago?

Answer 1

Cost = (3,500) * (1.04)^years
Cost = (3,500) * (1.04)^4
Cost = (3,500) * 1.16985856
Cost = 4,094.50