Question

Eating at the all-you-can-eat buffet at your favorite restaurant currently costs

$18.50, and increases in cost by 6% each year. What will this buffet cost in 6 years?
$26.24
$30.23
$27.13
$31.64

Answer 1

To find the cost of the all-you-can-eat buffet in 6 years, we need to calculate the price increase over 6 years. We can use the formula:

A = P(1 + r)^n

where A is the final amount, P is the initial amount, r is the annual interest rate as a decimal, and n is the number of years.

In this case, P = 18.50, r = 0.06, and n = 6. Plugging these values into the formula, we get:

A = 18.50(1 + 0.06)^6
A = 18.50(1.06)^6
A = 18.50(1.4185)
A = 26.23

Therefore, the cost of the all-you-can-eat buffet in 6 years will be approximately $26.23, which is closest to option A.