Over the last 50 years, the average cost of a car has increased by a total of 1,101%. If the average cost of a car today is $33,221, how much was the average cost 50 years ago?



To find the average cost of a car 50 years ago, we can use the formula that relates the final value, the initial value, and the percentage increase:

\[
\text{Final Cost} = \text{Initial Cost} \times (1 + \frac{\text{Percentage Increase}}{100})
\]

Given:
- Final Cost = $33,221
- Percentage Increase = 1,101%

We need to solve for the Initial Cost:

\[
33,221 = \text{Initial Cost} \times (1 + \frac{1,101}{100})
\]

Simplify the expression inside the parentheses:

\[
33,221 = \text{Initial Cost} \times 12.01
\]

Now, solve for the Initial Cost by dividing both sides by 12.01:

\[
\text{Initial Cost} = \frac{33,221}{12.01}
\]

Let's calculate this value.The average cost of a car 50 years ago was approximately $2,766.11.

Would you like further details or have any questions? Here are some related questions that might interest you:

1. How does the percentage increase affect the cost over time?
2. What would the car's cost be if the increase was different, say 500%?
3. How can we calculate the percentage increase if we know the initial and final values?
4. What are other common items whose costs have increased significantly over the past 50 years?
5. How does inflation impact the calculation of average costs over time?

**Tip:** Always keep track of how percentages affect values by using simple multiplication formulas, which can be helpful in finance and investment decisions.

Over the last 50 years, the average cost of a car has increased by a total of 1,101%. If the average cost of a car today is $33,221, how much was the average cost 50 years ago?

Learn how to calculate the average cost of a car 50 years ago based on a 1,101% increase over time. Using percentage increase formulas, this step-by-step solution breaks down the calculation. Suitable for Grades 8-10 students and anyone interested in understanding price increases over time.

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