Question

A new pair of sneakers costs $70 now. What is the cost of the shoes 5 years from now if the price increases 8% per year?

Answer 1

D. 109$ if it increases 8% a year

Answer 2

Answer:

Option A. $103.

Step-by-step explanation:

A new pair of sneakers cost $70 now.

The cost of the shoes after 5 years if the price increases 8% per year.

We will solve it by this formula

$A=P(1+\frac{r}{n})^{nt}$

Where A = final amount after t years

r = rate of increase

n = compounded in a year

t = time in years

$A=70(1+\frac{0.08}{1})^{(1)(5)}$

$A=70(1+0.08)^{5}$

A = 70(1.08)⁵

A = 70 × 1.46932808

A = 102.8529 ≈ $103

Option A $103 is the answer.