Question

The next model of a sports car will cost 12.9% more than the current model. The current model costs $56,000. How much will the price increase in dollars?What will be the price of the next model?

Answer 1

Given:

`\begin{gathered} Price(Current-model)=56000 \\ rate(increase)=12.9\% \end{gathered}`

To Determine: The price increase and the price of the next model

Solution

The price increase is the product of the rate and the price of the current model

`\begin{gathered} Price(Increase)=12.9\%*56000 \\ Price(Increase)=0.129*56000 \\ Price(Increase)=7224dollars \end{gathered}`

The price of the next model would be the addition of the current price and the price increase. This is as shown beloe

`\begin{gathered} Price(New-model)=7224+56000 \\ Price(New-model)=63224dollars \end{gathered}`

Hence, the price increase in dollars is $7,224 and

the price of the new model is $63,224