1.)
Between year 0 and year 1, we went from $50 to $55.
$55/$50 = 1.1
The price increased by 10% from year 0 to year 1.
Between year 2 and year 1, we went from $55 to $60.50.
$60.50/$55 = 1.1
The price also increased by 10% from year 1 to year 2. If we investigate this for each year, we will see that the price increases consistently by 10% every year.
The sequence can be written as an = 50·(1.1)ⁿ
2.) To determine the price in year 6, we can use the sequence formula we established already.
a6 = 50·(1.1)⁶ = $88.58
The price of the tickets in year 6 will be $88.58.
