You are planning on purchasing a new car and have your eye on a specific model. You know that new car prices are 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 current price is $27,000. Write the equation that represents the projected cost C and provide a solution for the problem.
a.

$115,751.53
c.

$106,666.67
b.

$32,818.67
d.

$113,400

Question

You are planning on purchasing a new car and have your eye on a specific model.  You know that new car prices are 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 current price is $27,000. Write the equation that represents the projected cost C and provide a solution for the problem.
a.

$115,751.53
c.

$106,666.67
b.

$32,818.67
d.

$113,400