Question
A car today costs $32000. Assume that the average annual rate of growth per year was 5.83% over the last 45 years to answer the following question.
Round all answers to the nearest whole dollar.
How much would the same value of car have cost 45 years ago in 1969?
How much future money will the same car cost 45 years in the future?
Round all answers to the nearest whole dollar.
How much would the same value of car have cost 45 years ago in 1969?
How much future money will the same car cost 45 years in the future?
Answers
Reiny
x(1.0583)^45 = 32000
x = appr $2500 ------- ( 2498.93)
reasonable , I paid $24,000 for my new 1965 MGB sportscar back then
x = appr $2500 ------- ( 2498.93)
reasonable , I paid $24,000 for my new 1965 MGB sportscar back then