Evaluating an exponential function that models a real-worid situation

If the rate of inflation is $2.5\mathrm{\%}$ per year, the future price $p(t)$ (in dollars) of a certain item can be modeled by the following exponential function, where $f$ is the number of years from today.
$$p(t)=1200(1.025{)}^t$$

Find the current price of the item and the price 8 years from today.
Round your answers to the nearest dollar as necessary.
Current price:
Price 8 years from today: $5◻$
Explanation
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Step 1 ：The question is asking for the current price of the item and the price 8 years from today. The current price can be found by substituting t=0 in the given function, because the current time is 0 years from today. The price 8 years from today can be found by substituting t=8 in the given function.

Step 2 ：Let's calculate the current price: $p(0)=1200(1.025{)}^0$

Step 3 ：So, the current price of the item is $\boxed{{\displaystyle 1200}}$ dollars

Step 4 ：Now, let's calculate the price 8 years from today: $p(8)=1200(1.025{)}^8$

Step 5 ：So, the price 8 years from today will be $\boxed{{\displaystyle 1462}}$ dollars

Step 6 ：Final Answer: The current price of the item is $\boxed{{\displaystyle 1200}}$ dollars and the price 8 years from today will be $\boxed{{\displaystyle 1462}}$ dollars.