Solution:
Given that;
The initial price of bushel of wheat is $3.52 and due to increased agricultural costs, the price of bushel of wheat increased by the rate of 1.7%
To find the function that represents the price of bushel wheat after years, we will apply the exponential growth formula
[tex]f(t)=a(1+r)^t[/tex]
Where
[tex]\begin{gathered} a\text{ is the initial price} \\ r\text{ is the growth rate } \\ t\text{ is time in years} \end{gathered}[/tex]
And
[tex]\begin{gathered} a=3.52 \\ r=\frac{1.7}{100}=0.017 \\ t=t \end{gathered}[/tex]
Substitute the values of a, r and t into the formula of exponential growth above
[tex]\begin{gathered} f(t)=3.52(1+0.017)^t \\ f(t)=\text{\$3.52}(1.017)^t \end{gathered}[/tex]
Thus, the function is
[tex]f(t)=\operatorname{\$}\text{3.52}(1.017)^t[/tex]
The answer is option B
