Author Question: Gasoline cost .10 per gallon in 1930. Over the next 60 years, the price rose at an average rate of ... (Read 73 times)

vicotolentino · **on:** Jul 10, 2018

Gasoline cost .10 per gallon in 1930. Over the next 60 years, the price rose at an average rate of 4.42 per year. Based on this information, what was the average price of a gallon of gas in 1990?

A) 1.34 per gallon
B) 1.53 per gallon
C) 2.65 per gallon
D) 2.75 per gallon

Question 2

For much of the 20th century, new car prices rose at an annual rate of 5.73. Given a beginning new car price of 600, how long did it take for the average new car price to rise to 16,950? Please round to the nearest year.

A) 40 years
B) 60 years
C) 70 years
D) 100 years

31809pancho · **Reply #1 on:** Jul 10, 2018

Answer to Question 1

Answer: A
Explanation: A) FV = PV (1 + r)n = 0.10 (1.0442)60 = 1.34
MODE = END
INPUT 60 4.42 -.10 0 ?
KEY N I/Y PV PMT FV
CPT 1.34

Answer to Question 2

Answer: B
Explanation: B) n = = = 59.96 years
MODE = END
INPUT ? 5.73 -600 0 16,950
KEY N I/Y PV PMT FV
CPT 59.96