$\text { If the annual rate of inflation averages } 8 \% \text { over the next } 10 \text { years, the approximate }$ cost $C$ of goods or services during any year in that decade is $C ( t ) = P ( 1.08 ) ^ { t }$ where $t$ is the time in years and $P$ is the present cost. The price of an oil change for your car is presently $\$ 24.35$. Estimate the price 3 years from now. Round your answer to two decimal places.
A) $\$ 26.30$
B) $\$ 30.67$
C) $\$ 78.89$
D) $\$ 25.61$
E) $\$ 94.31$

Question

Quizplus · Accepted Answer

To estimate the price 3 years from now, use the formula $C(t) = P(1.08)^t$ with $P = 24.35$ and $t = 3$. Calculating gives $C(3) = 24.35 \times (1.08)^3 \approx \$30.67$.

If the annual rate of inflation averages 8% over the next 10 years, the approximate \text { If the annual rate of inflation averages } 8 \% \text { over the next } 10 \text { years, the approximate } If the annual rate of inflation averages 8% over the next 10 years, the approximate

$\text { If the annual rate of inflation averages } 8 \% \text { over the next } 10 \text { years, the approximate }$