$\text { If the rate of inflation is } 3 \frac { 1 } { 2 } \% \text { per year and the average price of a car is currently }$

Multiple Choice

$\text { If the rate of inflation is } 3 \frac { 1 } { 2 } \% \text { per year and the average price of a car is currently }$ $\$ 40,000$ , the average price after $n$ years is $P _ { n } = \$ 40,000 ( 1.035 ) ^ { n }$ . Compute the average price after 6 years. Round your answer to two decimal places.

A) $\$ 32,301.59$
B) $\$ 49,170.21$
C) $\$ 248,400.00$
D) $\$ 45,937.01$
E) $\$ 231,600.00$