Given:
Initial cost of living = $44,000
Rate of increase = 5% = 0.05
To find:
The cost of living in 20 years.
Solution:
The exponential growth model is:
Where, a is the initial value, r is the growth rate and t is the number of years.
Putting in the above model, we get
Therefore, the cost of living in 20 years is about $116745.10.