Problema Solution
The average price of a movie ticket in a certain city was $10 in 2010, and it increases at 5% per year.
A: write the equation of the exponential function that models the average price of a movie ticket t years after 2010.
B: use the model to predict the average price of a movie ticket in 2015
Answer provided by our tutors
A: write the equation of the exponential function that models the average price of a movie ticket t years after 2010.
after 1 year the ticket will be: 10 + 0.05*10 =10(1 + 0.05)
after 2 years the ticket will be: 10(1 + 0.05) + 10(1 + 0.05)*0.05 = 10(1 + 0.05)^2
after 3 years the ticket will be: 10(1 + 0.05)^3
after x years the ticket will be
f(x) = 10(1 + 0.05)^x, where x is the number of years after 2010
B: use the model to predict the average price of a movie ticket in 2015
for the year 2015, x = 2015 - 2010 = 5
f(5) = 10(1 + 0.05)^5
f(5) = $12.73
the average price of a movie ticket in 2015 will be $12.73.