Consumer Math Help? Question: Let y = 10,000 (0.97)^x represent the buying power of $10,000, with an inflation rate of three percent per year. The table below represents the first four years later. Which year is incorrect?1 year later (x) | Purchasing Power (y) = 9,700 2 years later (x) | Purchasing Power (y) = 9,3083 years later (x) | Purchasing Power (y) = 9,1274 years later (x) | Purchasing Power (y) = 8,853Answers: A: 1B: 2C: 3D: 4

Accepted Solution

Here we are given the equation:[tex] y=10000*(0.97)^{x} [/tex]Here x represents the year.Now plugging the value of x for different year :A. x=1, [tex] y=10000*(0.97)^{1} [/tex]y=9700option A. 1 year is correct.B. x=2,[tex] y=10000*(0.97)^{2} [/tex]y=9404But in the option we are given y=9308So option B is incorrect.C. x=3,[tex] y=10000*(0.97)^{3} [/tex]y=9126.73 y= 9127 ( approx.)So option C is correct.D. x=4[tex] y=10000*(0.97)^{4} [/tex]y=8852.9y=8853 (approx)So option D is also correctAnswer : option C. 3