Question

TELE

Answer 1

Answer:

$23271.49

Step-by-step explanation:

The function $C(t) = C(1 + r)^{t}$ models the rise in the cost of a product that has a cost of C today, subject to an average yearly inflation rate of r for t years.

Now, if the average annual rate of inflation over the next 8 years is assumed to be 2.5% then we have to find the inflation-adjusted cost of a $19100 motorcycle after 8 years.

Therefore, the cost will be $C(8) = 19100(1 + \frac{2.5}{100} )^{8} = 23271.49$ dollars. (Answer)