Question

Your signed pair of Lebrons are worth$21,000 in the first year. After that year,the pair of Lebrons increased by 3.5%per year.a. In 8 year, What is the total priceof the shoes?

Answer 1

In order to determine the total price of the shoes, use the following formula to calculate the increase in cost of the shoes after 8 years:

I = Io·r·t

where

Io: initial cost = $21,000

r: anual rate = 3.5% = 0.035

t: years = 8

replace the previous values of the parameters into the formula for I:

I = (21,000)(0.035)(8)

I = 5,880

then, add the previous result to the initial cost:

$21,000 + $5,880 = $26,880

Hence, the cost of the shoes after 8 years is $26,880