1. The cost of a carbon-steel centrifugal pump(capacity 1000gpm x 100 psi; 100-hp motor) with all of the contact parts in carbon steel is presently $20000. If the inflation rate is 2% per year, the installed cost, in dollars, of a similar unit (capacity 1500 gpm x 90 psi; 125-hp motor) 2 years hence will be :

a. 93,600

b. 102,800

c. 87,900

d. 83,300

Please provide clear step wise solution

thank you!