Find the cost of movie admission in 20 years, assuming that it costs $10.50 today and the annual inflation rate will be 6%.
A) $10.55
B) $23.10
C) $33.67
D) $11.13
E) $11.60

Question

Quizplus · Accepted Answer

We can use the formula: Future Cost = Present Cost x (1 + inflation rate)^number of years

So, Future Cost = $10.50 x (1 + 0.06)^20
= $10.50 x 3.207135
= $33.67

Therefore, the cost of movie admission in 20 years will be $33.67. The best choice is option C.

Find the Cost of Movie Admission in 20 Years, Assuming