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GenaCL600 [577]
3 years ago
7

You are planning on purchasing a new car and have your eye on a specific model. You know that new car prices are projected to in

crease at a rate of 5% per year for the next few years.
Find the cost of the car 2 years from now if the current price is $25,000. Write the equation that represents the projected cost C and provide a solution for the problem.
a.
C = 25,000 (1.05) squared
$27,562.50
c.
C = StartFraction 25,000 (2) Over 1.05 EndFraction
$47,619.05
b.
C = 25,000 (1.05) (2)
$52,500
d.
C = 25,000 (2) Superscript 1.05
$51,763.25



Please select the best answer from the choices provided


A
B
C
D
Mathematics
1 answer:
olya-2409 [2.1K]3 years ago
5 0

Answer:

A

Step-by-step explanation:

Cost of the car in "n" years=25000*(1+0.05)^n

Cost of the car in 2 years=25000*(1+0.05)^2=25000*(1.05)^2=27562.5

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