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Home > A2C > Chapter 2 > Lesson 2.1.5 > Problem 2-74

2-74.

The price is multiplied by 1.1 each year.

Year 4 = $66.55 · 1.1 = $73.205
Year 5 = $73.205 · 1.1 = $80.5255
Year 6 = $80.5255 · 1.1 = $88.57805 ≈ $88.58

The price will be $88.58 in year 6.

How did you find the price for each subsequent year in part (a)?