As part of your financial planning, you wish to purchase a new car 6 years from today. The car you wish to purchase costs $13,000 today, and your research indicates that its price will increase by 2% to 4% per year over the next 6 years.

a.Estimate the price of the car at the end of 6 years if inflation is (1) 2% per year and (2) 4% per year.

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

c.Estimate the price of the car if inflation is 2% for the next 2 years and 4% for 4 years after that.