# A model giving the purchasing power of the 2001 constant dollar isd(t) 0.023t1.00 dollarswhere t is the number of years since the end of 2001. Based on data between 2001 and 2010.t (Note: Constant dollars are used to compare prices over time while removing changes due to inflation or deflation.)(a) What was the value of a 2001 constant dollar in the end of 1997? (Round your answer to two decimal places.)XWhat was the value of a 2001 constant dollar in the end of 2009? (Round your answer to two decimal places.)X(b) According to the model, when will the value of a 2001 constant dol lar fall below 85 cents? (Round your answers to three decimal places when appropriate.)years since the end of 2001 for the value of a 2001 constant dollar to fall below 85 cents. This will occur in --Select-It will takeAccording to the model, when will the value of a 2001 constant dollar fall below 80 cents? (Round your answers to three decimal places when appropriate.)years since the end of 2001 for the value of a 2001 constant dollar to fall below 80 cents. This will occur inSelectIt will take

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Step 1

a)

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.

Step 2

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.

Step 3

b)

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

It...

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