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Vladimir79 [104]
3 years ago
13

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

Mathematics
1 answer:
marin [14]3 years ago
4 0

Answer:

  $4,457,391.19

Step-by-step 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

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