In 2006, the cost of a train ticket from Boston to New York was $73. Assume that the price rises by 10% per year. Determine the cost of the same ticket 10 years from 2006. Let t = 0 represent 2006.

A 10% annual increase means the ticket price is multiplied by 1.10 each year. After 10 years, the price is $73 × (1.10)^10 ≈ $189.34. The correct choice is $189.34.

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