Question

The table shows the annual increase in cost in t years for certain grocery items. based on the formula A=C(1+r)^t , which equation could you use to determine the cost in t years for a gallon of milk?
A) A=4.25t(1.1)
B) A=4.25(1.10)^t
C) A=4.25(0.10)^t
D) A=4.25(0.90)^t

Answer 1

ANSWER

B.

$A=4.25(1.10)^t$

EXPLANATION

The formula for calculating the cost in t years is given by:

$A=C(1+r)^t$

To determine the cost in t years for a gallon of milk, we substitute,

C=$4.25

and

r=10%=0.10

in to the above formula to obtain:

$A=4.25(1+0.10)^t$

Simplify the parenthesis to get,

$A=4.25(1.10)^t$

The correct choice is B.