Question

Suppose in 2008 the average cost of a movie ticket in the United States was $7. If

inflation causes ticket prices to increase by 4.5% a year, in what year will a ticket cost
$25?

a. 2025
b. 2037
c. 2029
d. 2040

Answer 1

Answer: B

7(1+0.045)^29= 25

Answer 2

B) 2037

Explanation:

using the problem an exponential equation can be made

7(1.045)× =25

--solve for x--

x=28.9

it will take 28.9 year for the price to get to $25 so add 2008 to 28.9 to get 2036.9

2037 is closest to 2036.9 so the answer is B