Question

The rent for an apartment was $6,600 per year in 2012. If the rent increased at a rate of 4% each year thereafter, use an exponential equation to find the rent for the apartment in 2021

Answer 1

$9,393.78

Explanation:

Using the equation:

A = P(1+r)^t

Where,

A = final amount

P = initial amount = $6,600

r = rate of increase = 4% = 0.04

t = time in years = 9 years (2012-2021)

A = 6,600(1 + 0.04)^9

= 6,600(1.04)^9

= 6,600(1.4233)

= 9,393.78

A = $9,393.78