Question

This year, a ticket for an NFL game costs $150. If the ticket price has been...

This year, a ticket for an NFL game costs $150. If the ticket price has been rising 2% a year for the past 15 years, how much would a ticket have cost 15 years ago?

  • $201.88
  • $105.00
  • $150.00
  • $111.45
  • $195.00
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Answer #1

As here the ticket cost today is $ 150 and the rate of increase per year is 2 %

we can calculate the price of ticket 15 years ago with help of below formula-

PV is the value of the ticket 15 years ago

FV is value of ticket after 15 years

r is the rate of increase

n is the no. of years.

Now,

PV = 111.45 (approx)

Ticket have cost 15 years ago = 111.45 $

Hope it helps!

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