Given:
Initial amount (Base) = 15, 757
Rate of increase = 3.5% or 0.035 in decimal form
Find: new price and the price increase
Solution:
To be able to get the new price, we need to solve for the price increase first. To do that, we need to know what is 3.5% of the old price 15, 757. To calculate that, we will multiply 0.035 by 15,757.
[tex]0.035\times15,757=551.495\approx551.50[/tex]3.5% of 15, 757 is 551.50. This is the price increase of the car next year.
Hence, by next year, the new price will now be 15,757 + 551.50 = 16, 308.50.
