If you purchase an automobile for $20,000 in 2006 and inflation is 4 percent, how much would a similar automobile sell for four years from then?
A) $16,438
B) $16,454
C) $24,310
D) $24,334

Question

Quizplus · Accepted Answer

To calculate the future price considering inflation, use the formula: Future Price = Present Price * (1 + inflation rate)^number of years. Here, $20,000 * (1 + 0.04)^4 = $24,334.

If You Purchase an Automobile for $20,000 in 2006 and Inflation