Friday

December 19, 2014

December 19, 2014

Posted by **Anonymous** on Thursday, May 20, 2010 at 4:34pm.

Dave bought a new car 8 years ago for $8400. Tobuy a new car comparably equipped now would cost $12,500. Assuming a steady rate of increase, what was the yearly rate of inflation in car prices over teh 8-year period?

Is there an equation and could someone post the answer and (if someone could post the steps)?

- Algebra II -
**Terry**, Thursday, May 20, 2010 at 5:11pm8400 + 8x = 12500

8x = 4100

x = $512.50 (amount of inflation per year)

Note that you cannot convert this to percent rate because it wouldn't be steady. For the first year, 512.5/8400 = 6.1%. For the second year, the car is going to cost 8912.5, and 512.5/8912.5 = 5.75%. And so on...

**Answer this Question**

**Related Questions**

math - Sam bought a new car for $26,500. The car depreciates approximately 13% ...

Alg2 - The Mendes family bought a new house 10 years ago for $120,000. The house...

Alg2 - Can't figure this one out...The Mendes family bought a new house 10 years...

Math - A new car depreciates as soon as you drive it out of the parking lot. A ...

geometry - you are planning on purchasing a new car and have your eye on a ...

Algebra II - I first want to make it clear that I have only taken Geometry, ...

Algebra 2.. - a rule of thumb used by car dealers is that the trade in value of ...

math - Barbara knows that she will need to buy a new car in 3 years. The car ...

Math - Barbara knows that she will need to buy a new car in 2 years. The car ...

math - Barbara knows that she will need to buy a new car in 4 years. The car ...