# math

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

1. 👍 0
2. 👎 0
3. 👁 168
1. 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.

1. 👍 0
2. 👎 0
2. There is a formula, called the standard future value formula:
54 * (1 + .025)^10 = future value = \$69.12

1. 👍 0
2. 👎 0

## Similar Questions

1. ### algebra 2

When inflation causes the price of an item to increase the new cost C and the original cost c are related by the formula C=c(1+r)^n, where r is the rate of inflation per year as a decimal and n is the number of years. What would

2. ### Physics

The Earth's rate of rotation is constantly decreasing, causing the day to increase in duration. In the year 2006 the Earth took about .840 s longer to complete 365 revolutions than it did in the year 1906. What was the average

3. ### Trig!

a) The annual inflation rate is 3.5% per year. If a movie ticket costs \$7.50, find a formula for p, the price of the tickets t years from today, assuming that movie tickets keep up with inflation. b) According to your formula, how

4. ### Consumer Math

1. Ken bought a car last year to drive back and forth to work. Last year he spent \$1,098 on gas. This year, it was \$1,562. What is the inflation rate? a. About 51% b. About 42% c. About 20% d. About 39% I believe it is b is this

1. ### Calculus

The marginal cost for producing x units of a certain product is given by the formula MC = 0.001x^2-0.5x+66.5. A. What is the increase in the cost of the production if the production level is raised from 200 to 400 units? B. What

I got this long question i am not sure how to do. The current dollar-pound exchange rate is \$2 per pound. A U.S. basket that costs \$100 would cost \$120 in the United Kingdom. For the next year, the Fed is predicted to keep U.S.

3. ### social studies

Inflation is defined as a rise in the general level of prices. When inflation occurs, the buying power of the dollar would. A. increase B.decrease C.remain stable D. not be affected by inflation

4. ### MACRO

Suppose last year's inflation rate was 5%, but Wall Street analysts expect this year's interest rate to be 4%. Which of the following correctly describes people's beliefs according to rational or adaptive expectations theories?

1. ### Managerial Finance

Due to a recession, expected inflation this year is only 2%. However, the inflation rate in Year 2 and thereafter is expected to be constant at some level above 2%. Assume that expectations theory holds and the real risk-free rate

2. ### MATH

The cost to manufacture a product is proportional to the quantity produced, with a cost of \$270000 dollars per day when 900 items are produced. The cost to store n items is proportional to the square of n, with a daily storage

3. ### Algebra II

Growth and Decay 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 the 8-year

4. ### Math/Finance

Due to a recession, expected inflation this year is only 2%. However, the inflation rate in Year 2 and thereafter is expected to be constant at some level above 2%. Assume that expectations theory holds and the real risk-free rate