a frozen pizza that originally sold for $5.40 undergoes a 3% price increase each year. part 1 of 2 (a) find…

a frozen pizza that originally sold for $5.40 undergoes a 3% price increase each year. part 1 of 2 (a) find the new cost of the frozen pizza after 15 years. round your answer to the nearest cent. the new cost of the frozen pizza after 15 years is $8.41. part: 1 / 2 part 2 of 2 (b) if, on the other hand, the cost of the frozen pizza increased by 3% of the original cost each year for 15 years, how would that compare to your answer from part (a)? round all intermediate calculations and the final answer to the nearest cent. the frozen pizza would cost $ select

a frozen pizza that originally sold for $5.40 undergoes a 3% price increase each year. part 1 of 2 (a) find the new cost of the frozen pizza after 15 years. round your answer to the nearest cent. the new cost of the frozen pizza after 15 years is $8.41. part: 1 / 2 part 2 of 2 (b) if, on the other hand, the cost of the frozen pizza increased by 3% of the original cost each year for 15 years, how would that compare to your answer from part (a)? round all intermediate calculations and the final answer to the nearest cent. the frozen pizza would cost $ select

Answer

Explanation:

Step1: Calculate the annual increase amount

The original cost of the pizza is $C_0 = 5.40$. The amount of increase each year is $3%$ of the original cost. So the annual - increase amount $a=0.03\times5.40 = 0.162$.

Step2: Calculate the total cost after 15 years

The cost after 15 years $C$ is the original cost plus the total increase over 15 years. The total increase over 15 years is $15\times a$. So $C = 5.40+15\times0.162$. $C = 5.40 + 2.43=7.83$.

Answer:

$7.83$