Answer:
$27,186.57
Explanation:
Formula: starting cost(interest • 1)^time
First, we need to calculate the interest which in this case it would be 1.035(1+(3.5/100)) since it is increasing 3.5% each year. Then we can just plug the values into the formula to get:
22,500(1.035•1)^5.5 = 27,186.57