Question

An economist calculates that the cost of living in Lakeside is currently $80,010 per year and is increasing by 5% per year. What will the cost of living be in 13 years? If necessary, round your answer

Answer 1

The cost of living in Lakeside will be $110,088 after 13 years with a 5% annual increase.

Step-by-step explanation:

To calculate the cost of living in Lakeside after 13 years, we need to apply the 5% annual increase for 13 years.

First, we can calculate the increase for each year:

Year 1: $80,010 * 0.05 = $4,000.50 increase

Year 2: $80,010 + $4,000.50 * 0.05 = $4,200.53 increase

...

Year 13: $80,010 + $4,200.53 * 0.05 = $6,287.00 increase

Finally, we can calculate the cost of living in Lakeside after 13 years by adding the total increase to the initial cost:

$80,010 + ($4,000.50 + $4,200.53 + ... + $6,287.00)

Rounding the answer to the nearest dollar, the cost of living in Lakeside after 13 years will be $110,088.