Chapter 11.3, Problem 4P

To determine

To calculate:

The price of shoes $4$ from now.

Answer to Problem 4P

The price of shoes $4$ from now is $\$95.2342272$ .

Explanation of Solution

Given information:

Shoes pair of cost: $\$70$

Cost raises: $8\%=1.08$

Calculation:

Shoes cost $70$ dollars now.

In $1$ year the shoes will cost $70\times 1.08=\$75.6$

In $2$ year the shoes will cost $75.6\times 1.08=\$81.648$

In $3$ year the shoes will cost $81648\times 1.08=\$88.17984$

In $4$ year the shoes will cost $88.17984\times 1.08=\$95.2342272$

That is $70\times {1.08}^4$ .

So, the price of the pair of shoes is $\$95.2342272$ .