Question

Asked Apr 23, 2019

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An economist predicts that the buying power B(x) of a dollar x years from now will decrease according to the formula B(x) = 0.94^{x}. How much will today's dollar be worth in 4 years? Round the answer to the nearest cent.

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Step 1

To find the (decreasing) purchasing power of the dollar under the given model

Step 2

As the base 0.94 < 1, the value decreases The actual worth is obtained...

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