Assuming That the Rate of Inflation Is 4% Per Year

question 15

Multiple Choice

Assuming that the rate of inflation is 4% per year, the equation P = P _o (1.04) ^t yields the predicted price P , in t years, of an item that presently costs P _o. Find the predicted price of a $0.95 soft drink in 9 years. The choices are rounded to the nearest cent.

• A) $0.68
• B) $1.35
• C) $1.78
• D) $2.20

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Definitions:

ERV

Expired Reserve Volume; the additional amount of air that can be forcibly exhaled after the completion of a normal, quiet expiration.

AFB

Acid-fast bacillus, a type of bacteria that is resistant to decolorization by acids during staining procedures; commonly used to refer to tuberculosis-causing bacteria.

MDR TB

Multi-Drug Resistant Tuberculosis, a form of TB that is resistant to at least isoniazid and rifampicin, the two most powerful tuberculosis drugs.

Chronic Pulmonary Disease

A group of lung diseases that block airflow and make it difficult to breathe; commonly includes conditions like chronic bronchitis and emphysema.