The average price of a movie ticket in 1990 was $4.22 since then the price has increased by approximately 3.1% each year write an exponential function to model this situation then find the price of a ticket in 2016

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