The average of a certain car was $18,000 ten years ago. This year the average cost is

Question:

The average of a certain car was $18,000 ten years ago. This year the average cost is $30,000.
Calculate the average monthly inflation rate (fm) for this model.
Given the monthly rate, fm, what is the effective annual rate, f, of inflation for this model?
Estimate what these will sell for 10 years from now, expressed in today's dollars?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

System Dynamics

ISBN: 978-0073398068

3rd edition

Authors: William Palm III

Question Posted: