A car's price was $20,000 last year. If the inflation rate is 10%, what will be

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Question: A car\'s price was $20,000 last year. If the inflation rate is 10%, what will be the price of the car this year?

Options:

Correct Answer: $22,000

Solution:

Price this year = 20000 + (10/100 * 20000) = 20000 + 2000 = $22000

A car's price was $20,000 last year. If the inflation rate is 10%, what will be the price of the car this year?

A car's price was $20,000 last year. If the inflation rate is 10%, what will be the price of the car this year?

Step 1: Identify the original price of the car, which is $20,000.
Step 2: Determine the inflation rate, which is 10%.
Step 3: Calculate the amount of increase in price due to inflation by multiplying the original price by the inflation rate: 10/100 * 20000.
Step 4: Perform the multiplication: 10/100 equals 0.1, and 0.1 times 20000 equals $2000.
Step 5: Add the increase to the original price: $20,000 + $2,000.
Step 6: Calculate the final price: $20,000 + $2,000 equals $22,000.

Inflation Calculation – Understanding how to calculate the new price of an item based on a given inflation rate.
Percentage Increase – Applying the concept of percentage increase to determine the new value from the original price.