Question

Food costs are expected to rise 6% each month for the next year. which series correctly depicts the cost (to the nearest cent) for the next three months if the current cost is $150 per month? $150.00 + $159.00 + $168.00 $150.00 + $159.00 + $168.54 $159.00 + $168.00 + $177.00 $159.00 + $168.54 + $178.65

Answer 1

According to edjenuity, the answer was 

D. $159.00 + $168.54 + $178.65

Answer 2

Increment = 6% = 0.06
The explicit formula for the series is;
C(n) = C(n-1)(1.06), where n = nth month, C(n-1) = cost during previous month, C(n) = cost in month n

Applying the explicit formula;
Current cost = $150
2nd month cost = 150*1.06 = $159
3rd month cost = 159*1.06 = $168.54

The second option is correct.