71.8k views
3 votes
The price of a new Ford F-150 has increased by 6.5% this year. If the price was 27,000 last year, which expression cannot be used to calculate the price of the new Ford this year

1 Answer

2 votes

Answer:

Future value A = P(1+r)^(t)

A = 27000(1+0.065)^1

A = 27000(1.065)

A = 28755 units

Corrected question;

The price of a new Ford F-150 has increased by 6.5% this year. If the price was 27,000 last year, which expression can be used to calculate the price of the new Ford this year

Explanation:

Applying the future value formula;

A = P(1+r)^(t) .....1

Where;

A = final amount/value

P = initial amount/value (principal)

r = rate yearly

t = time in years

Given;

P = 27,000

r = 6.5% = 0.065

t = 1 year

Substituting the given values;

So A = 27000(1+0.065)^1

A = 27000(1.065)

A = 28755 units

User Priti
by
4.5k points