Question

The AMC ticket price to watch a movie is now, in 2021 , $13.69. Movie ticket prices are expected to increase by 8% each year for the next several years. How much should we expect movie ticket prices to cost in 2027 ?

Answer 1

To calculate the expected cost of movie ticket prices in 2027, multiply the current price by 1.08 for each subsequent year until 2027.

Step-by-step explanation:

To calculate the expected cost of movie ticket prices in 2027, we can use the given information that prices are expected to increase by 8% each year. We start with the current price, $13.69, and multiply it by 1.08 to get the expected price for the next year. We repeat this process for six years (2022-2027). The calculation is as follows:

1. $13.69 × 1.08 = $14.77
2. $14.77 × 1.08 = $15.97
3. $15.97 × 1.08 = $17.26
4. $17.26 × 1.08 = $18.64
5. $18.64 × 1.08 = $20.13
6. $20.13 × 1.08 = $21.74

Therefore, we can expect movie ticket prices to cost approximately $21.74 in 2027.