Question

As economist calculates that the cost of living in summerfield is currrently 85,000 per yaer. And increasing by 5% per year . What will be the cost of living in 10 years

Answer 1

138,456

Explanation:

Each year, the cost is multiplied by 1 +5% = 1.05. In 10 years, it will have been multiplied by that factor 10 times, so will be ...

85,000×1.05^10 ≈ 138,456

The cost of living in 10 years will be about 138,456 per year.