SOLUTION: Inflation has been running 4% per year. A car now costs $30,000. How much would it have cost 9 years ago? HINT [See Example 3.] (Round your answer to the nearest cent.)

SOLUTION: Inflation has been running 4% per year. A car now costs $30,000. How much would it have cost 9 years ago? HINT [See Example 3.] (Round your answer to the nearest cent.)

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Question 1069118: Inflation has been running 4% per year. A car now costs $30,000. How much would it have cost 9 years ago? HINT [See Example 3.] (Round your answer to the nearest cent.)
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
A=Ao(1+0.04)^9
30,000=1.4233Ao
Ao=30,000/1.4233=$21,077.60, rounded only at the end, which one has to do to make it the nearest cent.

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