Advanced Functions,Exponential Functions

  • Thread starter ohhnana
  • Start date
  • #1
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Homework Statement


Inflation is currently causing the cost of items to increase by about 2.5% per year. In 2009 a litre of gasoline costs approximately $0.90. What will it cost to fill a 60 litre gas tank 10 years from now? Round your answer to the nearest dollar.


Homework Equations



A=A0(1+i)^n

The Attempt at a Solution


C=.90+.025*10(.90)
 

Answers and Replies

  • #2
34,320
5,970

Homework Statement


Inflation is currently causing the cost of items to increase by about 2.5% per year. In 2009 a litre of gasoline costs approximately $0.90. What will it cost to fill a 60 litre gas tank 10 years from now? Round your answer to the nearest dollar.


Homework Equations



A=A0(1+i)^n

The Attempt at a Solution


C=.90+.025*10(.90)
= 1.125.

This answer doesn't take into account that the 2.5% increase is on the previous year's price. Use the equation you considered to be relevant to find the cost of a liter of gas in the 12 years from 2009 to 2021.

Then calculate the cost of a 60 L tank of gas.
 
  • #3
25
0
so what would A0 be?
 
  • #5
25
0
Thank You
 

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