Question

The Harrison family paid $14,400 in rent last year. The landlord has decided to raise rent 2.5% each year. How much will the Harrison family have to pay for rent on the 5th year? Round to the nearest whole dollar.

Answer 1

Answer: $16,200

Explanation:

`14,400` rent.

Raise of 2.5% (0.025)/year.

5 years.

Take the rent (14,400) and add 2.5% (0.025) of it (14400) for five (5) years.

`14400+0.025(14400)(5)`

`14400+1800\\=16200`