Gasoline cost $.10 per gallon in 1930.Over the next 60 years,the price rose at an average rate of 4.42% per year.Based on this information,what was the average price of a gallon of gas in 1990?
A)$1.34 per gallon
B)$1.53 per gallon
C)$2.65 per gallon
D)$2.75 per gallon

Question

Quizplus · Accepted Answer

The price of gasoline in 1990 can be calculated using the formula for compound interest: Final Price = Initial Price * (1 + rate)^years. Plugging in the values: $0.10 * (1 + 0.0442)^60 ≈ $1.34.

Gasoline Cost