Question

The concepts applied in economic evaluation to address the time-dependent value of money can also be applied to other phenomena, such as growth in traffic volume. The traffic volume on

a local highway was 3510 vehicles per day on an average day in 2012.Based on historical trends, the traffic volume is expected to increase by 3 percent per year for the foreseeable future. What is the expected traffic volume in 2022?

Fig: 1