Friday
April 18, 2014

Homework Help: math

Posted by Daniel on Sunday, April 7, 2013 at 12:29pm.

Confused!


So here is the question:
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).

For the mathematical portion, what would be the correct answer?

A = (0.9(1+0.25)^(10)) (60)

60 = # of litres
earlier portion of equation = cost of gas (per litre)

OR

Is the answer..

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

Thanks,

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

social studies - Treasury inflation protection bonds pay: fixed interest plus an...
math - If inflation is 6% a year compounded annually, what will it cost in 21 ...
Economics (inflation) - Hello! Could someone please check my answers for the ...
Economics - Suppose last month's inflation report estimated monthly inflation to...
economics - which of the following statements about inflation are true? check ...
math - Inflation is currently causing the cost of items to increase by about 2.5...
microeconomic - How might an investor who holds a regular 10-year Treasure note ...
math - I can not solve this problem it's kind of hard for me can anyone please ...
Inflation - What long term effect do lifting of price controls have on inflation...
Economics - Its difficult to meet the requirements of ceteris paribus when ...

Search
Members