Question

Your furniture-making company has a policy of increasing prices 3% per year to keep up with inflation. Last year your luxury chairs were priced at $525. How much should they be priced at this year?

Answer 1

Answer:

They should be priced $540.75 at this year.

Explanation:

Given that,

Furniture-making company has a policy of increasing prices 3%.

Last year, luxury chairs were priced at $525.

The price of the chair increase= 3% of $525

                                                  $=\ (\frac{3}{100}\times 525)$

                                                  =$15.75

The price of the luxury chair is=$(525+15.75)

                                                  =$540.75

They should be priced $540.75 at this year.