you are planning on purchasing a new car and have your eye on a specific model. you know that new car prices projected to increase at a rate of 5%per year for the next few years

find the cost of the car 4 years from now if the curent price is 27,000. Write the equation that represents the projected cost C and provide a solution for the problem.

http://arnoldkling.com/econ/GMU/growthArith.htm

The equation that represents the projected cost C of the car after 4 years can be written using compound interest formula:

C = P * (1 + r)^n,

where:
C = projected cost of the car after 4 years
P = current price of the car = $27,000
r = rate of increase per year = 5% = 0.05
n = number of years = 4

Plugging the given values into the equation, we get:

C = 27,000 * (1 + 0.05)^4

Now, we can solve this equation to find the projected cost of the car after 4 years.