As part of your financial planning, you wish to purchase a new car exactly 7 years from today. The car you wish to purchase costs $15,000 today, and your research indicates thats its price will increase by 4% to 8% per year over the next 7 years.

1) Estimate the price of the car at the end of 7 years if inflation is (1) 4% per year and 8% per year.

2) How much more expensive will the car be if the rate of inflation is 8% rather than 4%?

3) Estimate the price of the car if inflation is 4% for the next 2 years and 8% for 5 years after that.

ROUND ALL ANSWERS TO THE NEAREST CENT