Question

In 2013 selected automobiles had an average cost of $16,000. The average cost of those same automobiles is now $20,000. What was the rate of increase for these automobiles between the two time periods?

Step 1

Cost in year 2013 = C_{2013} = $ 16,000

Cost now = Cost in year 2019 = C_{2019} = $ 20,000

Number of years between 2019 and 2013 = n = 2019 – 2013 = 6 years

Step 2

Hence, the compounded annual rate of increase for these automobiles between the two time periods

=(C2019 / C201...

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