To determine the value of a 2001 constant dollar at the end of 1997.
Compute the value of t as follows.
t =1997− 2001
t = −4
Substitute t = −4 in d(t) = −0.023t + 1.00.
d(−4) = −0.023(−4) + 1.00
d(−4) = 1.092
Thus, the value of a 2001 constant dollar at the end of 1997 is $1.09.
Similarly compute the value of a 2001 constant dollar at the end of 2009 as follows.
t = 2009 − 2001
t = 8
Substitute t = 8 in d(t) = −0.023t + 1.00.
d(8) = −0.023(8) + 1.00
d(8) = 0.816
Thus, the value of a 2001 constant dollar at the end of 2009 is $0.82.
To determine the year when the value of a 2001 constant dollar is below 85 cents or 0.85 dollars.
Substitute d(t) = 0.85 in d(t) = −0.023t + 1.00.
0.85 = −0.023t + 1.00
t = 6.5
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