Problem

Finance The maximum allowable yearly contribution to an individual retirement account (IRA...

Finance The maximum allowable yearly contribution to an individual retirement account (IRA) was $2000 from 1981 to 2001 and has increased steadily since then. When the maximum is adjusted for inflation, however, the picture is a little different. The approximate maximum IRA contribution in 1981 dollars in year x is given by the function

where x = 0 corresponds to 1980.

(a) Graph this function.


(b) What does the graph say about inflation from 1981 to 2001?

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