Sure, let's solve this problem step by step.
### Step 1: Identify the initial cost of the car in 2020.
The initial cost of the car in 2020 is [tex]$32,500.
### Step 2: Determine the rate of inflation.
The inflation rate for the year is 8.5%.
### Step 3: Calculate the amount of cost increase due to inflation.
To find the cost increase, multiply the initial cost by the inflation rate:
\[ \text{Cost Increase} = \text{Initial Cost} \times \text{Inflation Rate} \]
The inflation rate in decimal form is 0.085.
So,
\[ \text{Cost Increase} = 32,500 \times 0.085 \]
### Step 4: Determine the cost increase in 2021.
From the calculation:
\[ \text{Cost Increase} = 2,762.5 \]
### Step 5: Find the total cost of the car in 2021.
To get the car’s total cost in 2021, add the cost increase to the initial cost:
\[ \text{Car Cost in 2021} = \text{Initial Cost} + \text{Cost Increase} \]
\[ \text{Car Cost in 2021} = 32,500 + 2,762.5 \]
### Step 6: Result.
Thus, the total cost of the car in 2021 is:
\[ 35,262.5 \]
Therefore, after accounting for 8.5% inflation, the cost of the same Tesla car in 2021 is $[/tex]35,262.5.
