Question

if my medical expenses are $40,000 per year for 35 years with an increase of 6% a year what is the total amount?

Answer 1

$4,457,391.19

Explanation:

The sum of n terms of a geometric sequence with common ratio r and initial value "a" is ...

S = a(r^n -1)/(r -1)

Here, your growth factor is r = 1 +6% = 1.06. So, the sum of expenses over 35 years will be ...

S = $40,000(1.06^35 -1)/(1.06 -1) = $4,457,391.19