Question: If the inflation rate averages 4% per year compounded annually for the next 4 years, what will a car that costs $13,000 now cost 4
If the inflation rate averages 4% per year compounded annually for the next 4 years, what will a car that costs $13,000 now cost 4 years from now? Identify the formula required to solve this problem. O A. A=P(1 + rt), where A is the amount, P is the principal, r is the annual simple interest rate, and t is the time in years OB. A=Per where A is the amount at the end oft years if P is the principal invested at an annual rater compounded continuously . A = P(1+1)", where and A is the amount at the end of n periods, P is the principal value, r is the annual nominal rate, mis number of compounding periods per year, i is rate per compounding period, and n is total number of compounding periods OD. 1 Prt, where is the interest, P is the principal, r is the annual simple interest rate, and t is the time in years A car that costs $13,000 now will cost $ 4 years from now. (Do not round until the final answer. Then round to the nearest cent as needed.)
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