Final answer:
To find the price after 10 years with a 5% increase per year, calculate the compound interest. Start with the current price and apply the yearly increase for each year.
Step-by-step explanation:
To find the price after 10 years, you need to calculate the compound interest. Start with the current price of RM500 and apply the 5% increase per year for 10 years.
Step 1: Calculate the interest for each year. For the first year, the interest is 5% of RM500, which is RM25.
Step 2: Add the interest to the original price. The new price after the first year is RM500 + RM25 = RM525.
Step 3: Repeat steps 1 and 2 for each year. For the second year, the interest is 5% of RM525, which is RM26.25. The new price after the second year is RM525 + RM26.25 = RM551.25. Continue this process for 10 years.
Step 4: The final price after 10 years is RM777.17 (rounded to 2 decimal places).