Question

on january 1,1999,the price of gasoline was$1.39 per gallon .if the price of gasoline increased by 0.5%per month ,what was the was the cost of one gallon of gasoline,to the nearest cent,on january 1 one year later?

Answer 1

$P(t)=1.39.(1.005)^t \ \ \ \ where t \ is \ time \ in \ months\\ \\ P(1)=1.39.(1.005)^1\\ \\ P(1)=1.39*1.005\\ \\ P(1)=\ \ 1.40$