Exponential Modeling

A can of soda in 1972 costs $0.10, by 2012 it cost $1.25.

Find the rate at which the cost of a can of soda increases over this time period.

  1. 👍
  2. 👎
  3. 👁
  1. if the rate of increase is linear, then
    rate = (1.25 - .10)/(2012-1972)
    = 1.15/40 = .02875
    or appr 3 cents a year

    1. 👍
    2. 👎
  2. on the other hand, given the topic of the posting,

    0.10(1+r)^40 = 1.25
    (1+r)^40 = 12.5
    1+r = 1.065
    r = 6.5% per year

    1. 👍
    2. 👎

Respond to this Question

First Name

Your Response

Similar Questions

  1. Personal Finance

    Check my work pls. 1. The components of ___ are variable costs and fixed costs. A. Entire cost B. Total cost* C. Complete cost D. Required cost 2. What is the margin of safety? A. How much sales can fall before a business starts

  2. health

    1.Why is soda considered bad for your teeth, particularly if you do not brush regularly? a) soda adds plaque to your teeth after drinking it b) soda does not completely rinse the excess food from teeth. c) soda eats away the

  3. Algebra 1

    Suppose soda is on sale for .50 a can and you have a coupon for .80 off the total price. Write a function rule for the cost of n cans of soda. My answer is c(n() = .80n -.50

  4. Physics

    A uniform soda can of mass 0.135 kg is 12.4 cm tall and filled with 1.25 kg of soda (figure below). Then small holes are drilled in the top and bottom (with negligible loss of metal) to drain the soda. (Initially the soda can is

  1. MATH!!!

    Writing a linear equation You are given the 2012 value of a product and rate at which the value is expected to change during the next 5 years. Use this information to write a linear equation that gives the dollar V of product in

  2. Algebra

    In 1972 federal vehicle emission standards allowed 3.4 hydrocarbons released per mile driven. By 2007 the standards allowed only 0.8 hydrocarbons per mile driven. What was the rate of change from 1972 to 2007?

  3. Math help

    Eric and Mark went to a ball game and visited the concession stand. They each got a hot dog, and mark got a large soda and a bag of peanuts. Eric had a coupon for 3$ off the cost. Mark Paid for the rest, which came to 11.50.

  4. Math

    A set costs half as much as a book.A book costs 600$ more than a pen.If the total cost of the three items is 6900$,find the cost of a set.

  1. Finance

    Personal Finance school can you check my answers? 1. The two components of are variable costs and fixed costs. Entire cost Total cost* Complete cost Required cost 2. What is the margin of safety? How much sales can fall before a

  2. MATH

    The average weight of a empty soda can isv18.2 grams. 12 ounces of soda weighs 373.96 grams. How much does a soda can full of soda weight?

  3. Math

    Amy and Mike are going to an amusement park. They each bought ice cream, and Mike got a soda. Amy had a $10 coupon to put toward the cost, and Mike paid the rest, which came to $30.25. Admission for one person costs $18.00, and

  4. accounting

    Houser Appliances accounts for all sales of its merchandise on the installment basis. Following is the unadjusted trial balance at 12/31/12. Cash $45,000 Installment accounts receivable—2010 20,000 Installment accounts

You can view more similar questions or ask a new question.