Solve the problem.Inflationary spiral.   If car prices increase 5% annually, then in n yea...

Solve the problem.

Inflationary spiral.   If car prices increase 5% annually, then in n years a car that currently costs P dollars will cost P(1.05)n dollars.

a) Use this algebraic expression to predict the price of a new 2015 Hummer H2, if the price of the 2009 model was $63,090 (www.edmunds.com).

b) Use the accompanying graph to predict the first year in which the price of this car will be over $100,000.

Figure for Exercise 163