Given:
[tex]\begin{gathered} Price(Current-model)=56000 \\ rate(increase)=12.9\% \end{gathered}[/tex]To Determine: The price increase and the price of the next model
Solution
The price increase is the product of the rate and the price of the current model
[tex]\begin{gathered} Price(Increase)=12.9\%\times56000 \\ Price(Increase)=0.129\times56000 \\ Price(Increase)=7224dollars \end{gathered}[/tex]The price of the next model would be the addition of the current price and the price increase. This is as shown beloe
[tex]\begin{gathered} Price(New-model)=7224+56000 \\ Price(New-model)=63224dollars \end{gathered}[/tex]Hence, the price increase in dollars is $7,224 and
the price of the new model is $63,224
