Question

It costs $850 per month to rent an apartment. The monthly cost increases by 3% each year. Find the monthly cost in 10 years.

The monthly cost in 10 years are $

Answer 1

Below

Explanation:

FV = PV ( 1 + i)^n

FV = future value PV = present value i = decimal interest per period (year)

n = periods (years)

FV = $ 850 (1 +.03)^10 = $ 1142.33