Question

Y=10,000(0.97)x predict purchasing power of $10,000 ten years later

Answer 1

Answer:

It will be $7602.3

Step-by-step explanation:

The equation $y = 10000(0.97)^{x}$ gives the purchasing power of $10000 after x years.

Therefore, the sum of money $10000 will value $10000(0.97)^{x}$ after x number of years.

Now, after 9 years i.e. x = 9 years, the sum value of $10000 will become $y = 10000(0.97)^{9} = 10000 \times 0.76023 = 7602.3$ dollars. ( Answer )