The U.S. Consumer Price Index is approximated by A(t) = 100e.024t where t measures the number of years since 1990. For example, A(12) is about 133. This means that the amount of goods that could be purchased for $100 in 1990 cost about $133 in 2002 (= 1990 + 12).
Use this function to compute:
a. The cost of $100 worth of goods (1990 prices) in 2014.
b. Determine the year when costs will be 200% higher than the costs in 1990.© BrainMass Inc. brainmass.com October 10, 2019, 7:33 am ad1c9bdddf
a. Since A(t) = 100e.024t where t measures the number of years since 1990, we can treat t=0 in year 1990.
So t=1 in year ...
This solution gives detailed steps explaining how to compute CPI and double value year using an exponential model.