(a) The annual inflation rate is 2.5 % per year. If a movie ticket costs $10.90, find a formula for p, the price of the ticket t years from today, assuming that movie tickets keep up with inflation.


(b) According to the formula from (a), how much will movie tickets cost in 13 years?

Round your answer to two decimal places.

In 13 years, a movie ticket will cost $ ____?

1 Answer

  • 4 weeks ago

    p=10.90 * 1.025**t

    for t=13

    p=10.9 * 1.025**t = 10.9 * 1.38 = $15.04

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