Carcass wrote:
The cost of painting a wall increases by a fixed percentage each year. In 1970, the cost was $2,000; and in 1979, it was $3,600. What was the cost of painting in 1988?
(A) $1,111
(B) $2,111
(C) $3,600
(D) $6240
(E) $6480
So from 1970 to 1979, the cost went up from $2,000 to $3,600 at a fixed percentage.
Letting
i be the fixed percentage, this can be written as:
2000(1+i)9=3600Then, from 1979 to 1988, the cost went up again by the same fixed percentage. Let's call the new amount
x. This can be written as:
3600(1+i)9=xNow lets put both of these equation on top of eachother:
2000(1+i)9=36003600(1+i)9=xWe can divide the top equation by the bottom equation to get rid of that
(1+i)9. If that's not a technique you're comfortable with, you can also just isolate
(1+i)9, and then set up the proportion:
20003600=3600xSimplifying:
59=3600x5x=3600∗9x=720∗9x=700∗9+20∗9x=6300+180x=6480And there's answer E