Gasoline cost $.10 per gallon in 1930. Over the next 60 years, the price rose at an average rate of 4.42% per year. Based on this information, what was the average price of a gallon of gas in 1990?
A) $1.34 per gallon
B) $1.53 per gallon
C) $2.65 per gallon
D) $2.75 per gallon
Answer: A
Explanation: A) FV = PV ∗ (1 + r)n = $0.10 ∗ (1.0442)60 = $1.34
MODE = END
INPUT 60 4.42 -.10 0 ?
KEY N I/Y PV PMT FV
CPT 1.34
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