With the current economy, gas prices are now skyrocketing! The price of gas used to be $3.70, and it is increasing at a rate of
5% a week. How long until a gallon of gas will cost $4.80?
1 answer:
Answer:
It will take 5.33 years for the price of gas to reach $4.8.-
Step-by-step explanation:
Giving the following information:
Present value= $3.7
Future value= $4.8
Growth rate= 5%
<u>To calculate the time required to reach $4.8, we need to use the following formula:</u>
<u></u>
n= ln(FV/PV) / ln(1+g)
n= ln(4.8 / 3.7) / ln(1.05)
n= 5.33
It will take 5.33 years for the price of gas to reach $4.8.-
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