on january 1,1999,the price of gasoline was$1.39 per gallon .if the price of gasoline increased by 0.5%per month ,what was the was the cost of one gallon of gasoline,to the nearest cent,on january 1 one year later?
P = 1.39(1+0.005)^12 = $1.48.
To calculate the cost of one gallon of gasoline one year later, we need to consider the increase of 0.5% per month over the course of 12 months.
Step 1: Calculate the monthly increase:
0.5% of $1.39 = (0.5/100) * 1.39 = $0.00695
Step 2: Calculate the total increase over 12 months:
$0.00695 * 12 = $0.0834
Step 3: Add the total increase to the initial price:
$1.39 + $0.0834 = $1.4734
Rounding to the nearest cent, the cost of one gallon of gasoline on January 1, one year later, is $1.47.
To find the cost of one gallon of gasoline one year later, we need to calculate the cumulative increase in price over 12 months.
Step 1: Calculate the monthly increase:
The price of gasoline increases by 0.5% per month.
0.5% can be written as 0.005 (decimal form).
Step 2: Calculate the cumulative increase:
To calculate the cumulative increase over 12 months, we multiply the monthly increase by the number of months.
Cumulative increase = 0.005 * 12 = 0.06 (decimal form)
Step 3: Calculate the new price:
To find the new price, we add the cumulative increase to the original price.
New price = Original price + Cumulative increase
New price = $1.39 + $0.06
New price = $1.45
Therefore, to the nearest cent, the cost of one gallon of gasoline on January 1st one year later would be $1.45.