If the Annual Rate of Inflation Averages Over the Next

question 17

Multiple Choice

If the annual rate of inflation averages over the next years, the approximate cost of goods or services during any year in that decade is where is the time in years and is the present cost. The price of an oil change for your car is presently . Find the rate of change of with respect to when . Round your answer to three decimal places.

• A) 32.176 dollars per year
• B) 1.966 dollars per year
• C) 2.293 dollars per year
• D) 5.962 dollars per year
• E) 32.730 dollars per year

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Definitions:

Depletable Resource

A natural resource that can be diminished or exhausted by use, such as fossil fuels, minerals, or forests.

Extraction Cost

The expenses associated with the removal of raw materials from their natural setting for use or sale.

Non-Monetary Benefits

Advantages or perks associated with a job or situation that are not in the form of money, such as health insurance or flexible working hours.

Hotelling Rule

A theory in economics that states the net price (price minus extraction costs) of a non-renewable resource should increase at the rate of interest over time.