Question

A new pair of sneakers costs $70 now. What is the cost of the shoes 5 years from now if the price increases 8% per year?

A. $103
B. $95
C. $88`
D. $109

Answer 1

D. 109$ if it increases 8% a year

Answer 2

Option A. $103.

Explanation:

A new pair of sneakers cost $70 now.

The cost of the shoes after 5 years if the price increases 8% per year.

We will solve it by this formula

`A=P(1+(r)/(n))^(nt)`

Where A = final amount after t years

r = rate of increase

n = compounded in a year

t = time in years

`A=70(1+(0.08)/(1))^((1)(5))`

`A=70(1+0.08)^(5)`

A = 70(1.08)⁵

A = 70 × 1.46932808

A = 102.8529 ≈ $103

Option A $103 is the answer.