Arnold paid R2 599,99 for a car sound system in 1997 Assuming an average inflation rate of 7% per annum what did he pay for a so

Question

2 years ago

5

und system with the equivalent value in 2014

1 answer:

iren [92.7K] · Answer 1 · 2023-06-10T03:47:48+03:00

The value of the car in 2014 is 154709

<h3>How to determine the value?</h3>

The given parameters are:

Initial, a = 599,99

Rate, r = 7%

The value of the car in t years is

Value = a * (1 + r)^t

This gives

Value = 59999 * (1 + 7%)^t

2014 is 17 years from 1997.

So, we have:

Value = 59999 * (1 + 7%)^14

Evaluate

Value = 154709

Hence, the value of the car in 2014 is 154709

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