Answer: $12601.58
Step by step explanation:
Average health premiums have been increasing at a rate of 5% per year. If an average family's
premiums are $11,430 this year, what will they be in 2 years?
If necessary, round your answer to the nearest cent.
First we add the total percentage (100%) to 5% (the rate of growth)
100% + 5%= 105% or 1.05
Then we find the solution by using y= a · b×
y= a * b×
y= 11430(1.05)×
x=2
1.05 to the power of 2= 1.1025
1.1025 x 11430= 12601.58 (rounded to nearest tenth)