Posted by **Daniel** on Tuesday, April 2, 2013 at 12:04am.

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. Name at least one thing other than inflation that determines the cost to the consumer of any article (not just gasoline).

This is worth 5 marks and need some help answering it clearly and precisely. I was gonna use supply/demand but i don't know if that would work.

-Dan

- math -
**Wayne**, Tuesday, April 2, 2013 at 4:35pm
Today it costs $54 to fill tank. In one year (per cent increase problem):

(x - 54)/54 = .025, so x = $55.35

in the next year:

(x - $55.35)/$55.35 = .025, so x = $56.73

Do this 8 more times, and you will get your answer: $69.12

I used an Excel worksheet to generate the answer. Not sure if there's a formula to solve this or not.

- math -
**Wayne**, Tuesday, April 2, 2013 at 4:40pm
There is a formula, called the standard future value formula:

54 * (1 + .025)^10 = future value = $69.12

## Answer this Question

## Related Questions

- math - Confused! So here is the question: Inflation is currently causing the ...
- Word Problems - I have two questions: Inflation is currently causing the cost of...
- Chemistry - Determine how many atoms there are in 1 litre of hexane or gasoline...
- Chemistry - Determine how many atoms there are in 1 litre of hexane or gasoline...
- Rational Functions Word Problem - A car travels at a constant speed and burns g(...
- math - a car travels at a constants speed and uses G(x) litres of gas per ...
- math - A college student wishes to compare tuition fee increases during the ...
- math - If gasoline costs $0.42 a liter, approximately how much will it cost to ...
- I.T - pseudocode for a program that is required to compute the costs of a car ...
- algebra 2 - When inflation causes the price of an item to increase the new cost ...

More Related Questions