Question

Clint needs to decrease his budget for groceries by 5% each month. He currently allots for $500 a month on groceries. What will be his allotment after 6 months

Answer 1

$386.9

Explanation:

Given that current grocery costs are $500 and he want to reduce 5% every month

We can create a geometric progression with a = 500 and common ratio(r) = 0.95

because every time we reduce 5% we actually make the actual cost as 95%

`T(n)=ar^(n-1)`

Now we should find n=6

`T(6)=500*(0.95)^(6-1)`

`t(6)=386.9`

The allotment is $386.9