Question

a new car cost $15,000 to build in 2010. the company's financial analysts expect costs to rise by 6% per year for the 10 years they are planning to build the car. the cost to build the car can be modeled by the function f(t)=1500*(1.06)^t, where t is the number of years after 2010. How much will it cost the company to build the car in 2017?

Answer 1

$22554.45

Explanation:

Since we are given a function to use to find the cost of the car, we first need to find the difference in the years 2017 and 2010

2017 - 2010 = 7

So our value for t will be 7.

We can use the formula because it still falls under the expected increase within the 10 year range.

So now let's substitute t in the function.

`f(7) = 15000*(1.06)^(7)`

`f(7) = 22554.45`

So it will cost the company $22554.45 to build the car in 2017.