You are planning on purchasing a new car and have your eye on a specific model. You know that new car prices are projected to increase at a rate of 5% per year for the next few years. Find the cost of the car 4 years from now if the current price is $27,000. Write the equation that represents the projected cost C and provide a solution for the problem.
a.
C = 27,000 (4) Superscript 1.05
$115,751.53
c.
C = StartFraction 27,000 (4) Over 1.05 EndFraction
$106,666.67
b.
C = 27,000 (1.05) Superscript 4
$32,818.67
d.
C = 27,000 (1.05) (4)
$113,400