Philippe wants to race in the Tour de France 10 years from now. He wants to know what the
cost of a custom-built racing bicycle will be 10 years from today. Consider the following data
pertaining to bike parts
Item
Current Cost
($)
Cost will Inflate x% per Year
(%/year)
Frame
3,500
4.5
Wheels
1,200
7.0
Gearing system
1,800
5.0
Braking system
1,250
3.0
Saddle
250
2.5
Finishes
400
8.0