Question

The town manager reports that revenue for a given year is $2.5 million.The budget director predicts that revenue will increase by 4% per year.If the directors prediction holds true,how much revenue will the town have available 10 years from the date of the town managers report?

Answer 1

2.5 times 1.04 (the .04 being the 4% increase) = 2.6 one year
2.6(1.04)=2.704
(1.04)=2.81216
(1.04)=2.9
(1.04)=3.04
(1.04)=3.16
(1.04)=3.28
(1.04)=3.42
(1.04)=3.55
(1.04) =3.7
(1.04)=3.84 million after 10 years