The estimated price of admission in year 6 would be approximately $89.14.
What will the price of admission be in year 6?
To determine the price of admission in year 6, identify the pattern in the price increase.
By observing the given data, we can see that the price of admission is increasing by a constant percentage each year.
Let's calculate the percentage increase between each year:
From year 0 to year 1: (55 - 50) / 50 = 0.1 or 10%
From year 1 to year 2: (60.60 - 55) / 55 ≈ 0.12 or 12%
From year 2 to year 3: (66.55 - 60.60) / 60.60 ≈ 0.098 or 9.8%
We can observe that the percentage increase is not consistent, but it is approximately between 9% and 12% each year.
To find the price of admission in year 6, estimate using the average percentage increase:
Average percentage increase ≈ (9% + 10% + 12%) / 3 ≈ 10.33%
Now, calculate the price in year 6 using the formula for compound interest:
Price in year 6 = Price in year 3 * (1 + Average percentage increase
Price in year 6 ≈ 66.55 * (1 + 0.1033
≈ 66.55 * 1.34 ≈ 89.14
Therefore, the estimated price of admission in year 6 would be approximately $89.14.
Great Amusements Park has been raising its ticket prices every year, as shown in the table below. What will the price of admission be in year 6?
Year: 0, 1, 2, 3
Price: 50, 55, 60.60, 66.55