Problema Solution
Steve's sells widgets for $1 each. Steve needs to raise his price to $1.80. What is the equation if he wants to raise the price 5% each week until the price reaches $1.80?
Answer provided by our tutors
Price after t weeks is given as
P = P0(1+t/100)^t
=> 1.80 = 1(1+5/100)^t
=> 1.80 = 1.05^t => t = ln(1.80)/ln(1.05)
=> t = 12.04 weeks