Question

The cost of a newsletter subscription is $20 per year. The cost is expected to increase 10% each year. Which expression can be used to find the cost n years from now? What will the expected cost be at the end of 3 years? A) 20(1.1)n; $26.62 B) 20(1.1)n ; $24.30 C) 20(1.1)(n + 1); $29.28 D) 20(1.1)(n + 2) ; $32.21

Answer 1

Selection A is appropriate.

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20*1.1^n is the general expression for the cost n years in the future.
20*1.1^3 = 26.62 is the cost 3 years in the future.