Answer:
A) The multiplier for this situation is 0.02.
B) The cost in 4 years will be $ 33,555.39.
C) 31,000 x 1.02 ^ N = X
Step-by-step explanation:
Since in 2012 the average cost for a new midsized car was about $ 31,000, and new car prices tend to go up about 2% every year, to determine what is the multiplier for this situation, what will the cost be in 4 years if this trend continues and to write an equation to calculate the cost in n years the following calculations must be performed:
A)
31,000 x 2/100 = X
31,000 x 0.02 = X
Thus, the multiplier for this situation is 0.02.
B)
31,000 x 1.02 ^ 4 = X
33,555.39 = X
Thus, the cost in 4 years will be $ 33,555.39.
C)
31,000 x 1.02 ^ N = X
Here, N represents the number of years over which the price increase will be calculated, and X represents the price after that number of years.
