Question

The cost of spandex is predicted to decrease by 5% per year for the next 3 years if the current cost is $20/yard how much will the cost of spandex be in 3 years

Answer 1

The cost of spandex in 3 years will be $17.15/yard.

Step-by-step explanation:

If the cost of spandex is predicted to decrease by 5% per year for the next 3 years, then the cost of spandex in each year can be calculated as follows:

1) At the end of the first year, the cost of spandex will be 95% of $20/yard = $19/yard.

2) At the end of the second year, the cost of spandex will be 95% of $19/yard = $18.05/yard.

3) At the end of the third year, the cost of spandex will be 95% of $18.05/yard = $17.15/yard.

Therefore, the cost of spandex in 3 years will be $17.15/yard.