Answer:
The purchasing power is $7374
Step-by-step explanation:
We are given an equation [tex]y=10000(0.97)^x[/tex]
where,
y represents purchasing power.
x represents the number of years.
We need to find purchasing power of $10000 after 10 years.
Put x=10 into equation and solve for y
[tex]y=10000(0.97)^{10}[/tex]
[tex]y=7374.24\approx 7374[/tex]
After 10 years the purchasing power of $10000 becomes $7374
As we can see the value of the product decrease.
Hence, The purchasing power is $7374
