Three years ago, the price of a uniform was $180 - HSC - SSCE Mathematics Standard - Question 7 - 2024 - Paper 1
Question 7
Three years ago, the price of a uniform was $180.
Due to inflation, the price increased annually by 2.5%.
What is the price of this uniform now?
A. $180.14
B. $181.3... show full transcript
Worked Solution & Example Answer:Three years ago, the price of a uniform was $180 - HSC - SSCE Mathematics Standard - Question 7 - 2024 - Paper 1
Step 1
Calculate the price increase for year 1
96%
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Answer
To find the new price after one year with a 2.5% increase, we can use the formula:
P1=P0imes(1+r)
where:
P0=180 (initial price)
r=0.025 (annual increase rate)
Calculating:
P1=180imes(1+0.025)=180imes1.025=184.5
Step 2
Calculate the price increase for year 2
99%
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Answer
Now, using the new price as the base for the second year:
P2=P1imes(1+r)
Substituting the values:
P2=184.5imes1.025=189.1125
Step 3
Calculate the price increase for year 3
96%
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Answer
Finally, we find the price for the third year:
P3=P2imes(1+r)
Substituting the values:
P3=189.1125imes1.025=194.4840625
Rounding this to two decimal places, the price of the uniform now is approximately $193.84.
