Question

Clint needs to decrease his budget for groceries by 5% each month. He currently allots for $500 a month on groceries. What will be his allotment after 6 months

Answer 1

Answer:

$386.9

Step-by-step explanation:

Given that current grocery costs are $500 and he want to reduce 5% every month

We can create a geometric progression with a = 500 and common ratio(r) = 0.95

because every time we reduce 5% we actually make the actual cost as 95%

$T(n)=ar^{n-1}$

Now we should find n=6

$T(6)=500\times(0.95)^{6-1}$

$t(6)=386.9$

The allotment is $386.9