00:01
For this problem, we are told that the formula, s equals c times 1 plus r to the power of t, models inflation, where c equals the value today, r equals the annual inflation rate in decimal form, and s equals the inflated value t years from now.
00:13
Whereas if the inflation rate is 3%, how much will a house now worth $192 ,000 be worth in 22 years, and we are to round our answer to the nearest dollar? so we'll have that s is equal to $192 ,000 times 1 ,000.
00:31
Plus 0 .03, that is 3 % inflation, to the power of 22.
00:39
Plugging this into a calculator is really all we need to do.
00:42
I'll note that we can do a couple of things here.
00:45
So we would have 192 ,000 times 1 .03 to the power of 22.
00:51
We have that 1 .03 to the power of 22 is going to be approximately equal to.
00:59
Let's see here.
01:00
We have 192 ,000 times approximately...