Question

The average price of Yankee season tickets behind home plate was $28,758 in 2012. 9 years earlier, the average price was $21,308. What was the annual increase in price? Multiple Choice Ο 373% Ο 407 Ο -3.28% Ο 3.39%

Answer 1

We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.

28758=21308*(1+r/100)^9

(28758/21308)^(1/9)=(1+r/100)

(1+r/100)=1.0339

r=1.0339-1

=3.39%(Approx).