Question

The next model of a sports car will cost 6.2% more than the current model. The current model costs $39,000. How much will the price increase in dollars? Whatwill be the price of the next model?Increase in price:Price of next model:

Answer 1

We have to calculate the increase in price and the price of the new model.

The next model will cost 6.2% more than the current model.

We can calculate the increase in price by multiplying the price of the current model by the increase proportion (0.062, which is the decimal expression for 6.2%):

`I=(6.2)/(100)\cdot39000=0.062\cdot39000=2418`

With the increase, we can calculate the price of the next model as:

`N=P+I=39000+2418=41418`

Answer:

Increase in price: $2,418

Price of next model: $41,418