Question

Carissa is budgeting for her next semester at college. She spent $50 on gas this month. Economists are predicting gas prices to rise 8% per month for the next 6 months. How much should she budget for gas if classes start next month and are 4 months long?

The answer is D.243.33
(I looked up the question and couldnt find it so i thought i'd post it for anyone who needed it)

Answer 1

D

Explanation:

edg 2021

Answer 2

Spent on gas this month = $50.

Predicted spent of gas next month = $50 * 1.08

Predicted spent of gases for the four months:

$50 * 1.08
$50 * 1.08^2
$50 * 1.08^3
$50 * 1.08^4

Total spent for the four months: $50 (1.08 + 1.08^2 + 1.08^3 + 1.08^4) = $50 * (4.8666) = $243.33, which is the option D. 243.33