Question

You are planning on purchasing a new car and have your eye on a specific model. You know that new car prices are projected to increase at a rate of 5% per year for the next few years. Find the cost of the car 4 years from now if the current price is $27,000. Write the equation that represents the projected cost C and provide a solution for the problem.

Answer 1

The equation for the projected cost C is as follows:

`C=C_(0)(1+r)^(t)`
where Co is the current cost, r is the rate of increase as a decimal and t is the time in years.
Plugging in the given values, we get:

`C=27000(1+0.05)^(4)=$32,818.67`

Answer 2

The answer is B!

Explanation:

edge 2021, hope this helps!