| Question | An automobile manufacturer has an automobile that gets 10 kilometers per liter of gasoline. It is estimated that gasoline prices will increase at a 12% per year rate, compounded annually, for the next 8 years. This manufacturer believes that the automobile fuel consumption for its new automobiles should decline as fuel prices increase, so that the fuel cost will remain constant. To achieve this what must be the fuel rating, in kilometers per liter, of the automobiles 8 years hence? |
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| Subject | business-economics |
