Question: 1. In 2011, selected automobiles had an average cost of $16,000. The average cost of those same automobiles is now $20,000. What was the rate of increase for these automobiles between the two time periods?
2. A family spends $46,000 a year for living expenses. If prices increase 3 percent a year for the next three years, what amount will the family need for their living expenses after three years?