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? $204. 00 $210. 80 $240. 00 $243. 33.

Answer 1

Step-by-step explanation:

Carissa spent $50 on gas this month, and the gas prices are predicted to increase 8% every month for the next six months. This can be expressed as a geometric sequence with the first term being $50 and the common ratio being 1.08.

Thus, the total amount that Carissa would spend on gas for the next four months can be calculated as:

$50 + $50(1.08) + $50(1.08)^2 + $50(1.08)^3 = $210.80 (rounded to the nearest cent)

Therefore, Carissa should budget $210.80 for gas for the next four months.