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2 years ago

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You rent an apartment that costs $1100 per month during the first year, but the rent is set to go up 9.5% per year. What would b

e the rent of the apartment during the 8th year of living in the apartment? Round to the nearest tenth (if necessary).

1 answer:

uranmaximum [27]2 years ago

8 0

Answer:

$2076.30

Step-by-step explanation:

In the n-th year, the rent will be ...

an = a1·r^(n-1) . . . . . . . . . r is the year on year ratio: 1+rate of increase

an = 1100·(1.095^(n-1))

Then the rent in the 8th year is ...

a8 = 1100·(1.095^(8-1)) ≈ 2076.30

The rent in the 8th year would be $2076.30.

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