If the rate of inflation is 3.7% per year, the future price p(t) (in dollars) of a certain item can be modeled by the following exponential function, where t is the number of years from today.p(t)=800(1.037)^tFind the current price of the item and the price 10 years from today. Round your answers to the nearest dollar as necessary.

The current price of the item is calculated to be $800 and the price after 10 years is calculated to be $1150.4 if the rate of inflation is 3.7% per year

Since the equation for the future value, in this case, is given as;

p(t)=800(1.037)^t

and t represents the number of years;

We can calculate the current price by substituting t = 0 in the equation as follows;

p(0) = 800(1.037)^0

p(0) = $800

Similarly, the price 10 years from today can be determined by substituting t = 10 as follows;

p(10) = 800(1.037)^10

p(10) = 800 × 1.438

p(10) = $1150.4

Hence the $800 is calculated to be the current price of the item and $1150.4 is calculated to be the price of the item 10 years from today.

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