Question

Food costs are expected to rise 6% each month for the next year. Which series correctly depicts the cost (to the nearest cent) for the next three months if the current cost is $150 per month?

a. $150.00 + $159.00 + $168.00
b.$150.00 + $159.00 + $168.54
c.$159.00 + $168.00 + $177.00
d.$159.00 + $168.54 + $178.65

Answer 1

the final answer is the last option, D

Explanation:

Answer 2

For this case we have the following equation:
y = 150 * (1.06) ^ t
For the first month we have:
y = 150 * (1.06) ^ 1
y = 159 $
For the second month we have:
y = 150 * (1.06) ^ 2
y = 168.54 $
For the third month we have:
y = 150 * (1.06) ^ 1
y = 178.65 $
Answer:
d. $ 159.00 + $ 168.54 + $ 178.65