as a result of inflation, the purchasing power of a fixed quantity of money decreases by 5% every year. if a…

as a result of inflation, the purchasing power of a fixed quantity of money decreases by 5% every year. if a certain quantity of money can buy 940 frozen dinners this year, how many frozen dinners can it buy in 16 years? if necessary, round your answer to the nearest whole number. frozen dinners

as a result of inflation, the purchasing power of a fixed quantity of money decreases by 5% every year. if a certain quantity of money can buy 940 frozen dinners this year, how many frozen dinners can it buy in 16 years? if necessary, round your answer to the nearest whole number. frozen dinners

Answer

Answer:

298

Explanation:

Step1: Identify the decay - formula

The formula for exponential decay is $A = P(1 - r)^t$, where $P$ is the initial amount, $r$ is the rate of decay, and $t$ is the time. Here, $P = 940$, $r=0.05$, and $t = 16$.

Step2: Substitute the values

$A=940\times(1 - 0.05)^{16}=940\times0.95^{16}$.

Step3: Calculate $0.95^{16}$

$0.95^{16}\approx0.4021$.

Step4: Calculate $A$

$A = 940\times0.4021\approx298$.