document.write( "Question 1029330: The rate of inflation is such that the price of a car costing $20,000 will double in eight years. What will be the price of the car in 5 years? \n" ); document.write( "

Algebra.Com's Answer #644391 by josmiceli(19441) $\"\"$ $\"About$

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Let $\"+r+\"$ = the rate of inflation
\n" ); document.write( " $\"+40000+=+20000%2A%28+1+%2B+r+%29%5E8+\"$
\n" ); document.write( " $\"+%28+1+%2B+r+%29%5E8+=+2+\"$
\n" ); document.write( "Take the log of both sides
\n" ); document.write( " $\"+8%2Alog%28+1+%2B+r+%29+=+log%282%29+\"$
\n" ); document.write( " $\"+log%28+1+%2B+r+%29+=+log%282%29+%2F+8+\"$
\n" ); document.write( " $\"+log%28+1+%2B+r+%29+=+.30103%2F8+\"$
\n" ); document.write( " $\"+log%28+1+%2B+r+%29+=+.03763+\"$
\n" ); document.write( " $\"+1+%2B+r+=+10%5E.03763+\"$
\n" ); document.write( " $\"+1+%2B+r+=+1.0905+\"$
\n" ); document.write( " $\"+r=+.0905+\"$
\n" ); document.write( "----------------
\n" ); document.write( "Let $\"+p+\"$ = the price of the car in 5 years
\n" ); document.write( " $\"+p+=+20000%2A%28+1.0905+%29%5E5+\"$
\n" ); document.write( " $\"+p+=+20000%2A1.5422+\"$
\n" ); document.write( " $\"+p+=+30843.12+\"$
\n" ); document.write( "The price will be $30,843.12 in 5 yrs \n" ); document.write( "

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