I’ve been given a task but I’m unsure how to go about it. I managed to work out how long it’ll take but unsure how to add in the 1% increase.
A man puts £5800 into a bank account to buy a car. The bank account attracts interest of 4% a year.
The price of the car is £6500. But the price goes up by 1% a year!
Assuming that the man does not take out, or add any money, how many years before he can buy the car?
And what would be the price of the car?