Advanced Functions,Exponential Functions

[ohhnana]

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)

 

[Mark44]

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.

 

[ohhnana]

so what would A0 be?

 

[Mark44]

.90 (dollars)

 

[ohhnana]

Thank You