Question

the average inflation rate of the us dollar over the last 5 years is 1.7 per year. if a new car cost $18,000 5 years ago, how much it cost today?

Answer 1

Answer: 255,574.26 USD

Explanation:

Let's look at how we can lay out this problem. We know that each year, the cost will increase by 1.7 percent. The original cost of the car is 18,000 USD. We can multiply this number by 1.7, then multiply that product by 1.7, and repeat the process 5 times.

18,000 x 1.7 = 30,600

30,600 x 1.7 = 52,020

52,020 x 1.7 = 88,434

88,434 x 1.7 = 150,337.8

150,337.8 x 1.7 = 255,574.26

The correct answer is 255,574.26 USD.

Hope this helps, good luck :) !