The price of a dozen eggs generally increases by 3 each year

The price of a dozen eggs generally increases by 3% each year The change in the price of a dozen eggs is modeled by the formula P = c(1+3/100)^t, where P is the orient price and c is the price t years ago. According to this model, if a dozen eggs cost $2.65 this year, how much would a dozen eggs have cost 10 years ago? A $0.91 B $1.31 C $3.56 D $1.97

Solution

P = x( 1+3/100)^t

If P = $ 2.65 ; t = 10 yrs . Find x:

2.65 = x( 1+0.03)^10

2.65/1.03^10 = x

x= 2.65/1.344 = $ 1.97

Option D