Question

The rent for an apartment was $6,600 per year in 2012. If the rent increased at a rate of 4% each year thereafter, use an exponential equation to find the rent in 2017

Answer 1

Answer:

$8,029.91

Step-by-step explanation:

You have to use the exponential growth equation:

A=P(1+r)^t

Where A is the final amount, P is the initial amount, r is the rate of increase, and t is the time in years. So:

A=6,600(1+0.04)^5

(The rate has to be changed into a decimal)

Then, just plug this equation into a calculator (without the A= part, so just 6,600(1+0.04)^5) and you'll get the answer.