Respuesta :
Answer:
Option A. $103.
Step-by-step explanation:
A new pair of sneakers cost $70 now.
The cost of the shoes after 5 years if the price increases 8% per year.
We will solve it by this formula
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
Where A = final amount after t years
r = rate of increase
n = compounded in a year
t = time in years
[tex]A=70(1+\frac{0.08}{1})^{(1)(5)}[/tex]
[tex]A=70(1+0.08)^{5}[/tex]
A = 70(1.08)⁵
A = 70 × 1.46932808
A = 102.8529 ≈ $103
Option A $103 is the answer.
