As part of your financial planning, you wish to purchase a new car exactly 6 years from today. The car you wish to purchase costs ?$11000 ?today, and your research indicates that its price will increase by 2?% to 4?% per year over the next 6 years.
A) Estimate the price of the car at the end of 6 years if inflation is 2% per year and 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 4 years after that ?