Question

A family spends $46,000 a year for living expenses. If prices increase 3 percent a year for the next three years, what amount will the family need for their living expenses after three years?

Answer 1

Answer:

$50,265

Explanation:

The computation of the living expenses after three years are shown below:

Given that

Living expenses per year = $46,000

Number of years it increases = Three years

So, the amount of living expenses after three years is

= Living expenses per year × (1 + percentage increase)^number of years

= $46,000 × (1 + 0.03)^3

= $46,000 × 1.092727

= $50,265

Answer 2

Amount of family spending after 3 year is $50,265 (Approx.)

Given that;

Amount of family spending = $46,000

Growth rate of spending = 3% per year

Find:

Amount of family spending after 3 year

Computation:

A = p[1+r]ⁿ

Amount of family spending after 3 year = 46,000[1 + 0.03]³

Amount of family spending after 3 year = 46,000[1.03]³

Amount of family spending after 3 year = $50,265 (Approx.)

Learn more:

https://brainly.com/question/3434080?referrer=searchResults