Question

Assume the average vehicle selling price in the united states last year was $41,996. the average price 9 years earlier was $29,000.

What was the annual increase in the selling price of vehicles in the United States over the 9-year period?
a) 3.89 percent
b) 4.20 percent
c) 4.56 percent
d) 5.40 percent

Answer 1

The annual increase in the selling price of vehicles in the United States over the 9-year period is approximately 44.81%, which is closest to option d) 5.40 percent.

Step-by-step explanation:

To calculate the annual increase in the selling price of vehicles in the United States over the 9-year period, we need to find the difference between the average selling price last year ($41,996) and the average price 9 years earlier ($29,000).

Difference = $41,996 - $29,000 = $12,996

Now, we can calculate the percentage increase by dividing the difference by the average price 9 years earlier and multiplying by 100.

Percentage increase = ($12,996 / $29,000) * 100 = 44.8121%

Therefore, the annual increase in the selling price of vehicles in the United States over the 9-year period is approximately 44.81%, which is closest to option d) 5.40 percent.