Question

If the price of gas is $2.35 this week and is said to increase 2% every week, what will the price be in 7 weeks?

O $2.04
O $2.70
O $2.40
O $2.30

Answer 1

If the price of gas is $2.35 this week and is said to increase 2% every week. The price of gas in 7 weeks will be $2.70.

What is the price?

The formula is:

P=P 0 ×(1+r)^n

where:

P =future price

P 0 = initial price

r = rate of increase

n = number of weeks

So,

Price after 7 weeks:

Price after 7 weeks =
`$2.35 * (1 + 0.02)^7`

Price after 7 weeks ≈ $2.68

Price after 7 weeks ≈ $2.70 (Approximately)

Therefore the price of gas in 7 weeks will be $2.70.