Question

The average cost of a movie ticket is $7.50. If this price increases annually by 7 percent, how much would a movie ticket cost in 9 years?

Question 5 options:

A)

$13.79 per ticket

B)

$12.55 per ticket

C)

$10.99 per ticket

D)

$11.21 per ticket

Answer 1

A) $13.79 per ticket

Explanation:

Hi, to answer this question we have to apply an exponential increase function:

A = P (1 + r) t

Where:

p = original price

r = increase rate (decimal form)

t= years

A = price after t years

Replacing with the values given:

A =7.50 (1+ [7/100]) ^9

A = $13.79 per ticket

Feel free to ask for more if needed or if you did not understand something.