Answer:
The products did cost $173.9 in 2010
Step-by-step explanation:
Exponential function
Two variables y and x are related as an exponential function if they comply:
[tex]F=Cr^{kx}[/tex]
where C is the initial value of F, r is the ratio, and k is a proportional constant.
The situation described in the question is modeled as
[tex]F=Cr^{n}[/tex]
Where F is the final value of the cart of groceries in 2010, C = $150 is its value in 2005, r is the yearly rate of increase. n is the number of years
[tex]\displaystyle r=1+\frac{3\%}{100\%}= 1.03[/tex]. So
[tex]F=150\ 1.03^{n}[/tex]
If we set n=5 (from 2005 to 2010):
[tex]F=150\ 1.03^{5}[/tex]
[tex]F=\$173.9[/tex]
The products did cost $173.9 in 2010
