For this case we have the following table:
0 3
1 3.12
2 3.24
3 3.37
4 3.51
We can model the data with the following function:
y = (3) * (1.04) ^ x
Where,
3: initial cost
1.04: 4% annual increase in cost
x: number of years
Answer:
y = ab^x
option 3
14b is the answer to this
I hope this helps you understand how to do the problem.
It is 17 if you do the math and do the multiples of 187 and 578