If the price of a gallon of regular gasoline is ​$2.49 and the anticipated rate of inflation in energy prices is such that the cost of gasoline is expected to rise by 5 percent per​ year, what is the expected price per gallon in 10 years? The expected price per gallon of gas in 10 years is ​$ ​(Round to two decimal​ places.)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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If the price of a gallon of regular gasoline is ​$2.49 and the anticipated rate of inflation in energy prices is such that the cost of gasoline is expected to rise by 5 percent per​ year, what is the expected price per gallon in 10 years?

The expected price per gallon of gas in 10 years is ​$

​(Round to two decimal​ places.)

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