Question

at a town with large convention center, the cost of a hotel room has increased by 5.1 percent anaually. if the average hotel room cost 48.00 in 1980 and this growth continues, what will the average hotel room cost in 2012
use the fourmula y=a(1+r)^t and round to the nearest cent
A. $143.38
B. $126.34
C. $235.79
D. $ 87.19
(please help and show a lil but of work )

Answer 1

Do you know how to use the formula?

Answer 2

y=a(1+r) to the power t

Answer 3

a=the starting amount
r=the rate of growth
t=the time span

Answer 4

plug in the information into the formula and I'll tell you if it's right or not

Answer 5

5.1(1+48)to the power 2012

Answer 6

you got it a bit mixed up
5.1% is the rate of growth, and to use it in the equation you have to convert it to 0.051
48 is the starting amount, as in the question it says that a hotel room costed $48 in 1980
and take 2012-1980 to find the time span

try it again

Answer 7

thank you for help. but I am more confused than I was

Answer 8

ok, the base amount is 48 (so it would be a), and every year this amount raises by 5.1%(which is 0.051, which is r), so 32(the time span) years later, they want to know what the amount is

a=48
r=0.051
t=32

do you get it so far?

Answer 9

I'll continue because I think you're having computer issues

if you plug the information into the formula you'll end up with:
48(1+0.051)^32

and then you just solve:
48(1.051)^32
235.79 (rounded to the nearest cent)

the answer is C

Answer 10

any questions?