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How much more expensive will the car be

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Question - As part of your financial planning, you wish to purchase a new car exactly 5 years from today. The car you wish to purchase costs PhP700,000 today, and your research indicates that its price will increase by 2% to 4% per year over the next 5 years.

a. Estimate the price of the car at the end of 5 years if inflation is

i. 2% per year

ii. 4% per year

b. How much more expensive will the car be if the rate of inflation is 4% rather than 2%?

c. Estimate the price of the car if inflation is 2% for the next 2 years and 4% for the next 3 years 12 after that.

Reference no: EM133165890

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