Question

In 2010 an item costs $9.00. The price increases by 1.5% each year. How much will it be in 2030?

Answer 1

Answer:11.7

Step-by-step explanation:

1. Recognize variables. Starting price is 9, it’s increasing by 1.5% each year, the question asks for the price in 20 years.

2. Convert percentage to decimal. Most calculators won’t understand multiplying by percentages, and instead will understand multiplying by decimals. A decimal is something we can easily work with. It is more commonly taught to work with decimals as well. With that said 1.5% equals .015. (The number in the ones place in the percentage is always in the hundredths place when converted to a decimal, the tens to the tenths, the hundreds in the percentage to the ones place in the decimal, the hundredths in the percentage to the ten thousandths in the decimal. Basically, every individual number [the 5 in 1.5] moves two spaces to the right when going from percentage to decimal form, likewise two to the left going from decimal to percentage form. 23%=.23, 104%=1.04, 0.5%=.05, 1.234%=.01234)

3. Make your equation

20(9*(.015))+9

+9 is your starting point

9*(.015) gives you the amount the price increases per year

20 is multiplied then to that increased price for the next 20 years

4. Crunch em numbers

PEMDAS