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.
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.
