Chapter 16.1, Problem 55E

(a)

To determine

To calculate: The uninflated cost $u\left(t\right)$

of Dugout snow shovels as a function of time t in years if uninflated cost of Dugout snow shovels varies from a high of $\$10$

on January $1$

where $t=0$

to a low of $\$5$

on July $1$

where $t=0.5$

and trend continues indefinitely.

(b)

To determine

To calculate: The cost $c\left(t\right)$

of Dugout snow shovels as a function of time t in years if the annual rate of inflation in the cost of snow shovels is $4\%$

and the cost of a snow shovel t years from now will be ${1.04}^t$

times of the uninflated cost.