Let y=20,000 (0.95) ^x repesents the purchasing power of $20,000 with an inflation rate of 5% per year. The table below represents the first 4 years later, rounded to the nearest dollar. Which year is incorrect?

Years later (x)

Purchasing Power $ (y)

1year = 19,100

2years=18,050

3years = 17,148

4years = 16,290

Question

Mathematics

Paula Lang

22 April, 11:03

Let y=20,000 (0.95) ^x repesents the purchasing power of $20,000 with an inflation rate of 5% per year. The table below represents the first 4 years later, rounded to the nearest dollar. Which year is incorrect?

Years later (x)

Purchasing Power $ (y)

1year = 19,100

2years=18,050

3years = 17,148

4years = 16,290

+2

Answers (1)

Know the Answer?

Ibarra · Answer 1

We simply substitute the values of x and check if the values of y match.

y (1) = 19,000

y (2) = 18,050

y (3) = 17,148

y (4) = 16,290

As is visible from the table, the first value quoted is incorrect.