Question

The tax revenue that a small city receives increases by 3.5% per year. In 1990, the city receives $250,000 in tax revenue. What would be the tax revenue in 1998?

Answer 1

Answer: $320,808

Explanation: The tax revenue that the small city receives in 1998 can be calculated by multiplying the tax revenue from each year by an increase factor of 1.035.

1990 Tax Revenue: $250,000

1991 Tax Revenue: $250,000 * 1.035 = $257,500

1992 Tax Revenue: $257,500 * 1.035 = $265,563

1993 Tax Revenue: $265,563 * 1.035 = $273,939

1994 Tax Revenue: $273,939 * 1.035 = $282,641

1995 Tax Revenue: $282,641 * 1.035 = $291,676

1996 Tax Revenue: $291,676 * 1.035 = $301,053

1997 Tax Revenue: $301,053 * 1.035 = $310,765

1998 Tax Revenue: $310,765 * 1.035 = $320,808

So in 1998, the small city would receive $320,808 in tax revenue.