Answer: the price of a ticket in 2016 is $9.33
Step-by-step explanation:
The formula for exponential growth which is expressed as
A = P(1 + r)^t
Where
A represents the average price of a movie ticket after t years.
t represents the number of years.
P represents the initial average price of a movie ticket.
r represents rate at which the price increased.
From the information given,
P = 4.22
r = 3.1% = 3.1/100 = 0.031
The exponential function to model this situation is
A = 4.22(1 + 0.031)^t
A = 4.22(1.031)^t
To find the price of a ticket in 2016,
t = 2016 - 1990 = 26
A = 4.22(1.031)^26
A = $9.33
