High School

Dear beloved readers, welcome to our website! We hope your visit here brings you valuable insights and meaningful inspiration. Thank you for taking the time to stop by and explore the content we've prepared for you.
------------------------------------------------ Using the equation [tex]$y=20000(0.95)^x$[/tex], predict the purchasing power of [tex]\$20,000[/tex] ten years later.

A. \$10,255
B. \$11,975
C. \$12,635
D. \$14,560

Answer :

To predict the purchasing power of [tex]$20,000 after ten years using the equation \( y = 20000(0.95)^x \), follow these steps:

1. Understand the Equation:
- The equation given is \( y = 20000(0.95)^x \).
- Here, \( y \) represents the purchasing power after \( x \) years.
- The initial purchasing power is $[/tex]20,000.
- The factor 0.95 suggests a 5% decrease in purchasing power each year.

2. Plug in the Values:
- To find out the purchasing power after ten years, substitute [tex]\( x = 10 \)[/tex] into the equation:
[tex]\[
y = 20000(0.95)^{10}
\][/tex]

3. Calculate Step-by-Step:
- First, calculate [tex]\( (0.95)^{10} \)[/tex].
- Then, multiply the result by 20,000 to find the purchasing power after ten years.

4. Result:
- After performing the calculations, the resulting purchasing power is approximately \[tex]$11,975.

Therefore, after 10 years, the purchasing power of $[/tex]20,000 will be approximately \$11,975.